BS EDIT: RBI's Monetary Policy Dilemma: Growth vs Inflation

Final MPC meet of FY25

• First meeting under Governor Sanjay Malhotra

• Markets await post-Budget rate signals

Slow growth fuels rate cut calls

• GDP growth seen at 6.4% (FY25) vs 8.2% (FY24)

• Fiscal prudence creates room for easing

Inflation still a concern

• December inflation at 5.2%, above the 4% target

• Food prices remain elevated

Global risks add uncertainty

• US tariffs may disrupt supply chains

• A stronger dollar pressures the rupee

Rupee depreciation impact

• RBI allowing gradual depreciation

• Raises import costs, affecting inflation

RBI’s likely stance

• No immediate rate cut expected

• Focus on inflation & liquidity management