PRICE STABILITY IS OUR MANDATED GOAL, SETS STRONG FOUNDATIONS FOR HIGH GROWTH: DAS

The MPC underlined the strong momentum in the domestic economy, the GDP expansion at 7.6 per cent in 2023-24 on the back of buoyant domestic demand, strong investment activity and a lower drag from net external demand.

- NIVEDITA MUKHERJEE

The bright growth prospects of the Indian economy in 2024-25 supported by strengthening rural demand, rising consumer confidence, optimism on employment and income, strong prospects of the manufacturing and services sectors are among the factors cited by Reserve Bank of India Governor in pushing for a vote to keep the policy repo rate unchanged at 6.50 per cent. “The strong growth momentum, together with our GDP projections for 202425, give us the policy space to unwaveringly focus on price stability. Price stability is our mandated goal and it sets strong foundations for a period of high growth,“ said Das, emphasising on continuity with withdrawal of accommodation, at the 48th meeting of the Monetary Policy Committee of the RBI (April 3-5), 2024, the minutes of which were released on Friday. The meeting also saw members Shashanka Bhide, Ashima Goyal, Rajiv Ranjan, Michael Debabrata Patra and Shaktikanta Das voting on status quo. The MPC underlined the strong momentum in the domestic economy, the GDP expansion at 7.6 per cent in 2023-24 on the back of buoyant domestic demand, strong investment activity and a lower drag from net external demand.