• RBI to Continue the Policy Rate After GDP Growth of Q2 FY25 Felt Slowed
• Q2 FY25 growth for GDP comes in at 5.4% YoY; that is from 6.7% YoY in Q1.
• RBI to retain policy rate during its forthcoming policy given slowing GDP growth in Q2 FY25.
RBI to Continue the Policy Rate After GDP Growth of Q2 FY25 Felt Slowed
• Q2 FY25 growth for GDP comes in at 5.4% YoY; that is from 6.7% YoY in Q1.
RBI to retain policy rate during its forthcoming policy given slowing GDP growth in Q2 FY25.
• Concludes that consumption growth had decelerated because urban demand was softer and, consequently, had moderated in leveraged consumption.
• GVA Growth slipped to 5.6% in Q2 after having recorded 6.8% in Q1, marking a sharp deterioration in broad-based economic performance.
• Investment growth remained soft because government capex has tracked lower than last year and private investment remains largely mute.
• It would indicate that the rural demand will rebound during the second half of the fiscal year due to a good performance in agriculture, payment from schemes by the government, and higher expenditure by the government.