Reserve Bank of India leaves GDP growth forecast for FY25 unchanged at 7.2%

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has kept its growth projection for India’s Gross Domestic Product (GDP) at 7.2% for the fiscal year 2025 in its fourth bi-monthly policy decision of the year on October 9.

The GDP growth rate is estimated at 7.2% for the second quarter of FY25, followed by 7.3% and 7.2% in the following quarters. For the first quarter of the next fiscal year, the growth is projected at 7.2%.

According to the monetary policy report, the FY26 GDP is seen at 7.1%, assuming a normal monsoon and no major shocks. The first quarter GDP forecast is 7.3%, followed by 7.2% and 7% for the subsequent quarters.

The RBI’s MPC maintained its inflation forecast for 2024-25 at 4.5%.

The RBI MPC left the key lending rate (repo rate) unchanged at 6.5% for the tenth straight time. However, the Central Bank changed its stance to “neutral” from “withdrawal of accommodation” earlier.

Catch live updates from the RBI MPC announcement here