The overall outlook remains positive, with steady growth expected across the quarters.

RBI Interest Rates Latest News: In its latest October meeting, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, opted to keep interest rates unchanged and shifted its policy stance from "withdrawal of accommodation" to "neutral." This decision reflects the committee’s efforts to balance inflation management with sustaining economic growth.

Key Interest Rates Unchanged  

The MPC decided to keep the key policy rates steady, marking the tenth consecutive meeting without a rate hike. The repo rate remains at 6.50%, the Standing Deposit Facility (SDF) at 6.25%, and the Marginal Standing Facility (MSF) at 6.75%. The last rate increase was in February 2023. This decision aligns with the RBI’s goal of maintaining a medium-term inflation target of 4%, within a tolerance band of +/- 2%, while promoting economic growth.

Economists’ Outlook

Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank, noted that the RBI’s move to hold rates while switching to a neutral stance was expected. She anticipates that rate cuts may begin in December 2024, but the scale of easing could be limited, with a cautious approach to successive rate reductions.

Current Key Rates:

- Repo Rate: 6.50%  
- SDF: 6.25%  
- MSF: 6.75%  
- Policy Stance: Neutral  

GDP Growth Projections Remain Strong 

The RBI maintained its GDP growth forecast for FY 2024-25 (FY25) at 7.2%, with the economy showing resilience in the first quarter, growing at 6.7%. Growth was supported by strong private consumption and investments. Governor Das expressed optimism about the economy's performance, driven by positive factors such as good rainfall, robust manufacturing, and a strong services sector. 

As the festival season begins, private consumption is expected to receive a further boost, complemented by healthy kharif sowing, increased bank credit, higher capacity utilisation, and government infrastructure projects.

GDP Growth Estimates:  
- Q2 FY25: 7%  
- Q3 FY25: 7.4%  
- Q4 FY25: 7.4%  
- Q1 FY26: 7.3%  

The overall outlook remains positive, with steady growth expected across the quarters as India’s economy continues to navigate inflationary pressures while sustaining robust economic activity.

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