THE FINANCE MINISTRY on Wednesday said the Reserve Bank of India's monetary policy stance and macro-prudential measures may have contributed to the demand slowdown in the economy.
However, the possibility that structural factors may also have contributed to the slowdown in H1 should not be ruled out, the ministry said in the monthly economic review for November.
It is "good news" that the RBI lowered the cash reserve ratio (CRR) from 4.5% to 4% in its policy meeting in December 2024, the ministry said, adding that it should help boost credit growth, which has slowed a little too much and quickly in FY25.
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