The Reserve Bank of India (RBI) has reiterated its policy stance of focusing on withdrawal of accommodation and inflation control while supporting growth. The RBI Governor highlighted positive macro fundamentals in India, despite inflation being projected to be above the target. The Monetary Policy Committee (MPC) has maintained its growth projection for FY2024 at 6.5%, with quarter projections adjusted slightly. An extended pause on rate hikes is expected, with the focus being on bringing down CPI inflation to the 4% target. The liquidity scenario has improved after the withdrawal of INR2,000 notes from circulation.
