RBI forecasts GDP growth at 7% for FY 25, lower than current fiscal

Mumbai: Following are the highlights of RBI's bi-monthly monetary policy announced by Governor Shaktikanta Das:

* Benchmark interest rate or repo rate kept unchanged at 6.5 per cent

* GDP growth for 2024-25 projected at 7 per cent, lower than 7.3 per cent this fiscal

* Retail inflation to average 5.4 per cent this fiscal, to come down to 4.5 per cent in 2024-25

* Monetary transmission by financial institutions still remains incomplete

* Current economic momentum to sustain in the next fiscal

* Recovery in rabi sowing, sustained profitability in manufacturing, resilience of services to support economic activity in 2024-25

* Investment cycle gaining steam, signs of revival in private sector capex

* Indian economy making confident progress on strong, sustained growth path

* Rural demand continues to gather pace, urban consumption remains strong

* Govt adhering to fiscal consolidation path; domestic economic activity strong

* Uncertainty in food prices continue to impinge on headline inflation

* Increasing geopolitical tension impacting supply chain, putting pressure on commodity prices

* Forex reserve at $622.5 billion; comfortable for meeting foreign obligations

* Domestic financial system remains resilient with a healthy balance sheet

* Regulated entities should accord highest priority to compliance, consumer interest protection

* RBI to introduce an offline functionality in CBDC-Retail for transactions in areas with poor or limited internet connectivity.

* Exchange rate of Indian rupee remained fairly stable in the current fiscal

* Next monetary policy committee (MPC) meeting scheduled during April 3-5, 2024.