RBI'S FEBRUARY 2025 POLICY: REPO RATE CUT ON

Wednesday, February 05 2025

The International Monetary Fund’s (IMF’s) latest World Economic Outlook (WEO) released on January 17, 2025 makes sober reading. While the IMF maintained its global growth forecast unchanged at 3.3 per cent both in 2025 and 2026, global headline inflation is likely to decline to 4.2 per cent in 2025 and to 3.5 per cent in 2026. In this tumultuous time, adroit risk management “requires a keen policy focus on balancing trade-offs between inflation and real activity, rebuilding buffers, and lifting medium-term growth prospects through stepped-up structural reforms as well as stronger multilateral rules and cooperation”.

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