Highlights from February monetary policy review

• The MPC voted with a 5-1 majority to keep policy rates unchanged. The repo rate remains at 6.50%, standing deposit facility (SDF) at 6.25% and marginal standing facility (MSF) at 6.75%

• The monetary policy stance of ‘withdrawal of accommodation’ was maintained with a 5-1 majority

• The consumer price inflation (CPI) forecast stands at 4.5% for fiscal 2025, down from an estimated 5.4% in the current fiscal. The MPC forecasts inflation to peak at 5% in the first quarter of fiscal 2025 and then moderate to reach 4.7% in the fourth quarter

• India’s GDP growth is forecast to slow a tad to 7% for fiscal 2025 from 7.3% this fiscal, with quarterly estimates revised up from the previous forecast.