Banking Financial Companies (NBFCs) are aggressively pursuing growth without proper administration, said Reserve Bank of India (RBI) Governor Shaktikanta Das while announcing the decisions during the bi-monthly Monetary Policy Committee (MPC) on Wednesday.

Reserve Bank of India Governor Shaktikanta Das estimated real GDP for 2024-25 to be 7.2 per cent. He projected real GDP for 2024-25 Q2 at 7 per cent, Q3 at 7.4 per cent, and Q4 at 7.4 per cent in the 51st meeting of the MPC.

With this new stance, many experts believe the central bank is opening the door for potential rate cuts in the near future. Below are key insights from industry professionals on what this policy change means for the Indian economy and financial markets.

The central bank has kept the repo or short-term lending rate unchanged at 6.5 percent since February 2023, and experts think some easing could only be possible in December. The government has tasked the central bank to ensure that Consumer Price Index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.

The Reserve Bank of India (RBI) has pegged the repo rate unchanged at 6.5 per cent. Governor Shaktikanta Das said while announcing the monetary policy statement on Wednesday that the decision was taken with 5:1 majority.

The Reserve Bank of India Governor Shaktikanta Das on Wednesday, while announcing Monetary Policy decision, said that banks and non-banking finance companies (NBFCs) cannot leavy foreclosure or pre-payment penalty charges on individual borrowers who have taken floating rate term loans.

RBI Governor Shaktikanta Das is set to announce the bi-monthly MPC meeting outcomes, likely maintaining repo rate at 6.5%. Despite US rate cuts, RBI ties future cuts to domestic inflation hitting a 4% target.