2024 financial wrap: Inflation, GDP, and RBI's regulatory vigilance

The overarching theme of this year has been the RBI's new approach to vigilance

As 2024 comes to a close, let’s look back at how it has been for India’s financial sector.

 

The policy rate remained unchanged at 6.5 per cent through the year. The last two meetings of the Reserve Bank of India’s (RBI’s) Monetary Policy Committee in October and December, however, saw some action as the growth-inflation dynamics started changing. In October, the RBI changed the stance of the policy from “withdrawal of accommodation” to “neutral”, and followed it up in December with a cut in banks’ cash reserve ratio to release liquidity in the system.

 

Before we get into the trends