Expect no change in policy rate and stance

The RBI will not take its eyes off inflation. There is no room for complacency

The Indian economy expanded 7.6 per cent in the September quarter of financial year 2024, beating analysts’ estimates by a wide margin and confirming the narrative that indeed India is the fastest-growing major economy in the world. It’s also 110 basis points (bps) higher than the Reserve Bank of India’s (RBI’s) projection of the second quarter gross domestic product (GDP) growth. One bp is a hundredth of a percentage point.

Against this backdrop, what will the Monetary Policy Committee (MPC), the Indian central bank’s rate-setting body that will hold its bimonthly meeting this week, do? Before I get into the