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Below the Reaction Quote on today's RBI MPC announcement from Raghvendra Nath, Managing Director, Ladderup Wealth Management Pvt. Ltd

"As expected, the RBI kept the Repo rate unchanged at 6.5% and maintained its stance focused on withdrawal of accommodation. Advanced estimate for Real GDP growth in FY23-24 stands at 7.6%. with a strong GDP growth in the previous year, RBI remains steadfast in its goal to bring inflation down to the 4% target, which has eased to 5.1% in March. Projections of Real GDP growth for FY24-25 at 7% and CPI inflation at 4.5% for the year along with strong manufacturing & services PMI numbers and healthy corporate and banking balance sheet instills confidence of the resilience of Indian economy. If rural demand strengthens and there are no adverse surprises in inflation from food or crude oil prices, private consumption is expected to rise, further aiding the growth trajectory. However, the timing and extent of rate cuts remain dependent on announcement by global central banks and the CPI aligning with RBI’s 4% target on a sustained basis."

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