MUMBAI, Dec 24 Reuters India39;s growth trajectory is expected to pick up in the second half of 202425, driven by domestic private consumption and a sustained revival of rural demand, the central bank said in its monthly bulletin released on Tuesday.

High frequency indicators for the third quarter of 202425 indicate that the Indian economy is recovering from the slowdown in momentum witnessed in Q2, driven by strong festival activity and a sustained upswing in rural demand, the Reserve Bank of India said in an article titled 39;State of the Economy39;.

Additionally, the prospects for agriculture and rural consumption are looking up due to brisk expansion of rabi sowing, it said.

India39;s GDP growth rate fell unexpectedly to 5.4 in the JulySeptember quarter, its slowest pace in seven quarters, while inflation in November was well over the RBI39;s mediumterm target of 4.

If inflation is allowed to run unchecked, it can undermine the prospects of the real economy, especially industry and exports, the RBI said.

However, the usual winter easing of food prices is setting in and the prospects of private consumption and exports accelerating are getting brighter, it said in the bulletin.

The RBI39;s Monetary Policy Committee kept its key interest rate unchanged earlier this month citing inflationary concerns. But it cut banks39; cash reserve ratio for the first time in over four years, effectively easing monetary conditions as economic growth slowed.

High prices are the…