16 key takeaways from the RBI's fourth monetary policy review
RBI Governor Shaktikanta Das says inflation in the second and third quarters of the ongoing fiscal year is expected to remain above the upper tolerance level of 6 per cent. Here are key takeaways from RBI's fourth monetary policy review of the fiscal year 2022-23
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FollowAmid geopolitical developments and higher global commodity prices, the Reserve Bank of India on Friday retained its retail inflation forecast for the current fiscal year at 6.7 per cent. Let's take a look at the key takeaways from the RBI's fourth monetary policy review for the fiscal year 2022-23:
* Short-term lending rate (repo) raised by 50 basis points to 5.4%. Since May 2022, the repo rate has been hiked by 140 bps to check inflation.
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* GDP growth projection for 2022-23 retained at 7.2 per cent.
* GDP growth projection: Q1 at 16.2 pc; Q2 at 6.2 pc; Q3 at 4.1 pc; and Q4 at 4 pc
* Q1:2023-24 real GDP growth projected at 6.7 per cent
* Domestic economic activity showing signs of broadening
* Retail inflation projection for 2022-23 retained at 6.7 per cent
* Inflation projection: Q2 at 7.1 pc; Q3 at 6.4 pc; and Q4 at 5.8 pc; Q1:2023-24 at 5 pc
* India saw large portfolio outflows of $13.3 billion in FY23 up to August 3
* Financial sector well capitalised and sound
* India's foreign exchange reserves provide insurance against global spillovers
* MPC decides to remain focused on the withdrawal of accommodative stance to check inflation
* Depreciation of rupee more on account of appreciation of US dollar rather than weakness in macroeconomic fundamentals of the Indian economy
* RBI to focus on maintaining the stability of the rupee
* Rupee depreciated by 4.7 pc against US dollar this fiscal year till August 4
* India's foreign exchange reserves remain the fourth largest globally
* Mechanism to be activated to allow NRIs to use Bharat Bill Payment System for payments of utility and education on behalf of their families in India
* Next meeting of rate-setting panel scheduled for September 28-30, 2022.
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With agency inputs
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