Additionally, the central bank revised its economic growth forecast for the fiscal year 2024 to 7% from 6.5%, with projections of 6.5% for Q3 and 6% for Q4, while maintaining its inflation projection for the current fiscal year at 5.4%. However, RBI Governor Shaktikanta Das warned about the possibility of accelerating inflation in November and December due to food price pressures. India's annual inflation slowed to a four-month low of 4.87% in October due to a slowdown in housing and clothing & footwear prices.
The latest move was in line with market forecasts amid the easing cost pressures. The Reserve Bank of India held its benchmark policy repo at 6.5 percent for the fifth consecutive meeting in December 2023 to ensure inflation stays within the central bank's 2-6% target range while supporting growth.
