RBI's Steady Hand: Confidence in India's Economic Trajectory

The Reserve Bank of India (RBI) has chosen to maintain its neutral policy stance, signaling strong confidence in the country's current economic trajectory. According to Dharmakirti Joshi, Chief Economist at CRISIL, the decision reflects satisfaction with the existing growth and inflation metrics.

Joshi, in a conversation with ANI, emphasized that the unchanged policy rates indicate the Monetary Policy Committee's (MPC) approval of the macroeconomic landscape. The RBI acknowledged modest inflationary pressures and a robust growth forecast, with expectations aligning closely with the economic survey projecting potential growth at around 7%.

The RBI's cautious stance comes ahead of significant changes in consumer inflation and GDP metrics rebaserting with a new base year. The rebasing could reshape economy estimates, making the central bank wary of committing to firm projections. Looking ahead, investment support and rural consumption are expected to be key growth drivers, bolstered by fiscal measures included in the Union Budget.