Key points of first RBI monetary policy of FY25

New Delhi: The Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced the first monetary policy of the financial year 2024-25 which kept the repo rate unchanged for the seventh time in a row. 

The two-day review meeting of the RBI's Monetary Policy Committee (MPC), the rate-setting panel, commenced on April 3 and concluded today, April 5.

Here are the key takeaways from the address by RBI:

1. India's GDP growth for FY25 projected at 7%
2. RBI Monetary Policy Committee decides to keep repo rate unchanged at 6.5%
3. RBI's monetary policy decision based on majority of 5:1 vote
4. Robust growth prospects provide policy space to remain focused on bringing inflation to 4% target
5. Food inflation pressures accentuated in February; MPC remains vigilant towards upside risk of inflation
6. Global debt-to-GDP ratio remains high, may have spill-over effect on emerging economies
7. Global growth remains resilient; recent uptick in crude oil prices needs to be closely monitored
8. Continuing geopolitical tensions pose upside risks to commodity prices
9. High, persisting food inflation could unhinge anchoring of inflationary expectations
10. Elephant in the room (inflation) appears to have gone out for a walk, we want it to remain in forest
11. RBI retains inflation forecast at 4.5% with risk evenly balanced assuming normal monsoon for current fiscal
12. Moderating inflationary pressure, sustained momentum in manufacturing, services sectors should boost private investment
13. Rural demand catching up, consumption expected to support economic growth in FY'25
14. India's forex reserves reached all-time high of USD 645.6 billion as of March 29