However, there was a shift in the voting pattern to 4:2 on the former, with one additional external member opting for a rate cut as compared to the previous meeting. This was also not unexpected, given the sharp undershooting in the Q2 FY25 GDP growth prints.
The tone of the policy document as well as the Reserve Bank of India (RBI) governor's statement was rather mixed, with the unfavorable trends in the recent consumer price index (CPI) inflation and GDP growth numbers complicating the situation. This raises the importance of the incoming data over the next few months, until the next MPC meeting in early February 2025.
As was largely expected, the committee cut back the GDP growth projections for FY25 quite sharply to 6.6% from 7.2% earlier, with the sizeable undershooting in the Q2 FY25 GDP print weighing on the forecast. While the policy document highlighted that the outlook is favorable, it scaled back its growth projections for Q3 and Q4 FY25 by 60 and 20 basis points (bps) respectively, and for Q1 FY26 by 40 bps. The MPC also issued a fresh forecast for Q2 FY26, at 7.3%, on the low base of Q2 FY25.
This story is from the December 07, 2024 edition of Financial Express Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 07, 2024 edition of Financial Express Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Why international stars are pulling out of Hockey India League en masse
IN OCTOBER, WHEN the Hockey India League (HIL) player auctions were held, 96 international stars were snapped up by eight men and four women franchises. Now, with a fortnight left for the competition to begin, more than one-fourth of them have pulled out.
Pushpa 2 hits ₹1,000-crore milestone at global BO
ALLU ARJUN'S PUSHPA 2: The Rule has hit the milestone of ₹1,000 crore at the global box office in just six days, making it the fastest Indian film to register the feat.
US hotels welcome Indian tourists with chai, samosa
US HOTELS AND travel companies are aiming to tap a surge in Indian tourists to boost revenue as domestic leisure spending falters and demand from East Asian countries remains below pre-pandemic levels.
EY case puts spotlight on white-collar labour laws
Decades-old laws largely focused on blue-collar workers
'India should stop playing footsie with everyone and say loudly that we are part of an open world'
A Tan Adda held in Mumbai, political analyst and CNN news host Fareed Zakaria spoke on what Trump's win means for the rest of the world, how his talk of increasing tariffs will play out, and why India is the most pro-American country in the world
Equirus Wealth crosses ₹10K cr in assets under management
Equirus Wealth on Wednesday said it has surpassed ₹10,000 crore in assets under management (AUM).
MFs, pension funds must be active in corp bond market: Setty
STATE BANK OF India (SBI) chairman C S Setty on Wednesday called for active participation of mutual funds and pension funds in the corporate bond market.
Rupee gains 2p to settle at 84.83
THE RUPEE GAINED 2 paise to close at 84.83 against the US dollar on Wednesday, a tad above its all-time low level, amid rising expectations of a shift in the Reserve Bank's monetary policy stance following the appointment of Sanjay Malhotra as the new governor.
Sebi notifies tighter insider trading rules
RISK OF UNJUST ACCUSATIONS RISES
Prioritising inclusion in social networking
@®Famm Connect acts as a LinkedIn for the LGBTQ+ community
