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Below the Quote on RBI MPC announcement by Dr. Ravi Singh, SVP - Retail Research, Religare Broking Ltd

As expected, the Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 6.5 percent, focusing on the withdrawal of accommodation to anchor inflation expectations and ensure fuller policy transmission, with a firm commitment to achieving the 4 percent inflation target on a durable basis. Global and domestic growth have been resilient, with private consumption recovering and rural demand boosted by farm activities. The IMD's forecast of an above-normal southwest monsoon is expected to enhance Kharif production, potentially improving the inflation-growth balance. The increase in the GDP projection for the FY25 by RBI from 7% to 7.2% shows the commitment towards the balanced growth with control over inflation.

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