RBI predicts 7% economic growth in FY25, with a strong momentum expected to continue from the previous year. Inflation is projected to reduce to 5.4% in FY24 and 4.5% in FY25, assuming a normal monsoon. However, uncertainties and risks such as geopolitical tensions and food price shocks still remain. The central bank has not yet completed the transmission of a 250-bps rate cut from May 2022.