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Below the Quote on today`s RBI MPC announcement Raghvendra Nath, Managing Director, Ladderup Wealth Management Private Ltd

“In its latest meeting, RBI decided to maintain the policy rate at 6.5%, adhering to a stance of withdrawing accommodation. This decision, made with a 4:2 majority, aligns with expectations, as the balance between inflation and growth appears favorable.

The ongoing growth momentum is underpinned by several factors: the government’s sustained focus on capital expenditure, robust private consumption, healthy balance sheets of banks and corporations, high-capacity utilization, and improving business optimism. Consequently, the GDP forecast for 2024-25 has been revised upwards to 7.2% from the previous 7%. This optimistic outlook is fuelled by the strong performance of the eight core industries, consistent strength in both the manufacturing and services PMIs, and robust expansion in overall economic activity.”

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