RBI MPC Announcement: Inflation Outlook and Policy Decisions for FY25
| Aspect | Details |
|---|---|
| Key Announcement | RBI MPC announced its decision to maintain the policy repo rate at 6.50%. |
| CPI Inflation Projection | Projected CPI inflation for FY25 is 4.5%, with variations across quarters: |
| - Q2FY25: 3.8% | |
| - End of FY25: Slight increase expected. | |
| Food Inflation | February food inflation decreased to 7.8%, but volatility remains a concern. |
| Factors Influencing Inflation | |
| - Record rabi wheat output and normal monsoon forecasts to stabilize cereal prices. | |
| - Climatic shocks and low reservoir levels pose risks to food prices. | |
| - Fuel price deflation expected to deepen, but international crude oil prices pose upward pressures. | |
| MPC Voting Details | |
| - Five members (Drs. Shashanka Bhide, Ashima Goyal, Rajiv Ranjan, Michael Patra, and Governor Shaktikanta Das) voted to maintain the repo rate. | |
| - Professor Jayanth R. Varma voted for a 25 basis points reduction and a neutral stance. |