Key Points
Reserve Bank of India (RBI) Governor Shaktikanta Das, while unveiling the outcomes of the first bimonthly Monetary Policy Committee (MPC) meeting of FY25, characterized inflation as the prominent challenge, referring to it as "the elephant in the room.".
During his address, Governor Das remarked, "The elephant in the room was CPI inflation..
As the path of disinflation needs to be sustained till inflation reaches the 4 per cent target on a durable basis, the MPC decided to keep the policy repo rate unchanged at 6.50 per cent in this meeting..
In its April meeting, the MPC left its inflation forecast for this fiscal year unchanged at 4.5 per cent assuming normal monsoon, even as the country braces for a scorching summer amid a spike in crude oil prices and persisting worries about supply chain due to the Red Sea crisis...
In February, India's retail inflation remained largely unchanged at 5.09 per cent compared with 5.10 per cent owing to higher food prices that sparked economists to believe that the policy rate-setting panel will leave key rates unchanged in April..
