The Reserve Bank of India (RBI) has increased its inflation forecast for the financial year 2023 from 4.7 per cent to 5.7 per cent. RBI Governor Shaktikanta Das gave this information on Friday after the first meeting of the Monetary Policy Committee (MPC) for this financial year. Shaktikanta Das has projected RBI’s Consumer Price Index (CPI) based inflation to be 5.7 per cent in FY2023.
RBI Governor said that in the first quarter of FY 2023, CPI inflation is estimated to be 6.3 percent, in the second quarter it is expected to be 5 percent, in the third quarter it is estimated to be 5.4 percent and in the fourth quarter it is estimated to be 5.1 percent. can stay on.
Shaktikanta Das said that the rise in crude oil prices due to Russia-Ukraine war may increase inflation. Global crude oil prices still remain high. Apart from this, edible oil prices are likely to remain elevated in the near future.
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RBI said that there has been a reshuffle in the inflation estimates at the global level and has created a risk of major impact on global production. Shaktikanta Das said that amid geopolitical tensions, cost pressures are expected to increase and supply chain constraints are expected to persist.
No change in repo rate
RBI’s Monetary Policy Committee (MPC) has once again decided not to make any change in the repo rate. RBI said that the repo rate will remain unchanged at 4% as before. At the same time, the reverse repo rate remains at 3.35%. This is the 11th consecutive meeting when there has been no change in the repo rate.
GDP forecast downgraded
The Reserve Bank has reduced the GDP growth forecast to 7.2% in the financial year 2022-23. Earlier, RBI Governor had earlier projected the growth rate to be 7.8 percent in the financial year 2022-23. RBI said that the corona epidemic has had an impact on India’s growth. However, now the economy is showing signs of recovery. GDP growth in the December quarter of the financial year 2021-22 stood at 5.4 per cent. The growth rate in the September quarter was 8.5 per cent.