The RBI’s Monetary Policy Committee kept the policy rate unchanged and retained the stance at “neutral”. The RBI announced measures to address liquidity challenges and boost credit, thereby supporting growth. It cut the Cash Reserve Ratio by 50bps to 4%, which will release primary liquidity of Rs 1.16 lakh crore to the banking system. Regarding the outlook, the RBI revised its FY25 economic growth projection downward to 6.6% while revising the inflation forecast upward to 4.8%. With the CRR cut in this meeting, we expect the next policy move to be a policy repo rate cut in February, assuming there are no major shocks in the interim and inflation follows the expected trajectory.