11 Dec 2024RBI’s December 2024 Monetary Policy Update ????
The Reserve Bank of India (RBI) has announced its fifth bi-monthly monetary policy for FY25 yesterday, December 6.
Key highlights:
1️⃣ Repo Rate: Unchanged at 6.5% for the 11th consecutive meeting, as decided by a 4-2 majority in the Monetary Policy Committee (MPC).
2️⃣ Policy Stance: Neutral, with a clear focus on aligning inflation with the target while fostering growth.
3️⃣ CRR Cut: Cash Reserve Ratio slashed by 50 basis points to 4%, aiming to boost liquidity in the banking system.
What does this mean?
- Borrowing costs remain stable, supporting businesses and consumers.
- The CRR cut injects additional funds into the economy, which could spur lending and economic activity.
As the RBI balances inflation control and growth, these moves could have ripple effects on markets, lending rates, and overall liquidity.
What are your thoughts on the policy? Are we on the right track for economic growth?