The MPC unanimously voted to cut policy rates by 25 bps – largely along expected lines, while maintaining the neutral policy stance. The committee acknowledged recent progress in disinflation along with a favourable outlook on food inflation and continued transmission of past rate hikes. The CPI inflation, which is likely to avearge at 4.8% in the ongoing financial year, was projected to ease to 4.2% next year. The growth was seen to recover from a sharper slowdown seen in Q2 FY25, but still remain below the levels seen in the past. The RBI continued to see India growth as strong and resilient, but not immune to global uncertainties. The central bank ensured to maintain adequate liquidity in the system, and remain proactive to keep both transitory and durable liquidity in place as required.
