The Reserve Bank of India (RBI) has, in a first, acknowledged that the economy will contract in the current financial year — something that independent experts have already assessed. It is in this context that the central bank’s Monetary Policy Committee (MPC) cut the repo rate by 40 basis points (bps) despite a “highly uncertain” outlook on retail inflation. The MPC expected the high inflation rate to be short-lived, expecting it to fall below 4 per cent in the second half of the current financial year. Experts have countered this view. No one in the government was earlier of the
Wednesday, July 09, 2025 | 05:46 AM ISTहिंदी में पढें
Experts disagree with MPC stance that inflation will fall below 4% in H2
RBI acknowledges economy will contract in the current fiscal even as independent experts have already assessed so.
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However, RBI Governor Shaktikanta Das did not give an exact figure for the decline in gross domestic product (GDP). He said he would wait for the release of GDP data for FY20, by the statistics office next week, to make a specific projection.
