ENA Economy 2025-05-29 17:39:30 <p><span style="font-size:14px"><strong>New Delhi, May 29 (KNN)</strong> The Reserve Bank of India expressed increased confidence in achieving its inflation target of 4 percent within the next twelve months, citing recent benign consumer price inflation data in its annual report for 2024-25 released Thursday. </span></p> <p><span style="font-size:14px">The central bank's assessment reflects a notable shift in the inflation trajectory, supporting expectations for monetary policy adjustments aligned with economic growth requirements.</span></p> <p><span style="font-size:14px">The monetary policy committee has implemented accommodative measures since February, reducing the policy repo rate by a cumulative 50 basis points and formally adopting a growth-supportive stance in April. </span></p> <p><span style="font-size:14px">These decisions underscore the central bank's strategic focus on supporting economic expansion while maintaining price stability objectives. </span></p> <p><span style="font-size:14px">The RBI projects headline inflation at 4 percent for fiscal year 2026, alongside gross domestic product growth expectations of 6.5 percent.</span></p> <p><span style="font-size:14px">However, the report identifies significant external risks that could impact both growth and inflation trajectories. </span></p> <p><span style="font-size:14px">Global trade uncertainties following protectionist policy implementations, persistent geopolitical tensions, and international financial market volatility present downside risks to growth while potentially creating upward pressure on inflation. </span></p> <p><span style="font-size:14px">These factors require continuous monitoring and may influence future policy adjustments.</span></p> <p><span style="font-size:14px">Supply-side developments present favorable conditions for inflation management in the coming fiscal year. </span></p> <p><span style="font-size:14px">The report highlights easing supply chain pressures, declining global commodity prices, and expectations for enhanced agricultural production supported by above-normal southwest monsoon patterns and elevated reservoir levels. </span></p> <p><span style="font-size:14px">The banking sector assessment reveals institutional resilience while emphasising the importance of proactive risk management given global uncertainties. </span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 42261 https://knnindia.co.in/news/newsdetails/economy/rbi-confident-of-achieving-4-inflation-target-by-next-year 2025-05-29 17:39:30 knnindia.co.in