RBI Monetary Policy Review - No Surprises; FY25 GDP, Inflation Forecast Unchanged: IDBI Capital

IDBI Capital Report

In line with expectations, the Monetary Policy Committee continued to retain policy repo rate at 6.5% with focus on withdrawal of accommodation stance. Inflation levels for FY25 projections have remained unchanged at 4.5%.

Similarly, GDP growth forecast have remained unchanged at 7.2% for FY25. The standing deposit facility rate remained unchanged at 6.25% along with marginal standing facility rate and the Bank Rate at 6.75%.

The system level liquidity was at a deficit of Rs 0.45 lakh crore in June, but it turned to surplus of Rs 1.1 lakh crore in July and Rs 2.7 lakh crore as of August 6.

RBI pro-actively managed system level liquidity by conducting VRR to inject liquidity and VRRR auctions to absorb surplus in the system in July-August.

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