A pragmatic policy

Growth prospects are robust domestically. Key drivers on the demand side, household consumption will improve further, while prospects of fixed investment remain bright

The concluding MPC decision for FY24 was on expected lines in terms of a status quo. The macroeconomic assessment also was on expected lines. Although global growth is projected to stay steady in 2024 by most forecasts, there remains an element of uncertainty in the outlook, given the continued trends in geoeconomic fragmentation. The global inflation is correcting and expectations of reversal in interest rate cycle are building up.

Domestically, the growth prospects are robust. The key drivers on demand side, household consumption will improve further, while prospects of fixed investment remain bright.

Inflation is expected to move into the tolerance band