New Delhi, Feb. 8 -- The Union Bank of India highlighted that inflation for FY25 could be lower than the Monetary Policy Committee's (MPC) revised forecast of 4.4 per cent, with Q4 FY25 Consumer Price Index (CPI) inflation likely tracking at 4 per cent. For FY26, the bank projects inflation at 4.0 per cent, slightly below the MPC's estimate of 4.2 per cent.

It has raised concerns over downside risks to India's growth and inflation projections for the coming years.

The UBI stated, "MPC revised FY25 growth projection to 6.4 per cent from 6.6 per cent previously even as it projects recovery to 6.7 per cent in FY26. We see downside risk to 6.4 per cent growth forecast for FY25 as it assumes Dec'24 quarter growth above 6.5 per cent while its...