The Reserve Bank of India has projected that inflation for FY24 will be at 5.4 per cent, this is in sync with the overall estimates. RBI Governor Shaktikanta Das said that the monetary policy to remain disinflationary. The Governor further added that the target of 4% inflation has not been achieved yet, and the headline inflation remains characterised by volatility, according to Das.
#WATCH | RBI Governor Shaktikanta Das says, "…CPI (consumer price index) inflation is projected at 5.4% for the current year 2023-24, with Q3 at 5.6% and Q4 at 5.2%. CPI inflation for Q1 of 2024-25 is projected at 5.2%, Q2 at 4% and Q3 at 4.7%. The risks are evenly balanced." pic.twitter.com/euzW21089n
— ANI (@ANI) December 8, 2023
— ANI (@ANI) RBI MPC: India’s battle with stubborn inflation
India grappled with persistent inflation concerns in July, primarily driven by soaring vegetable prices. Additionally, key commodity prices such as cereals, spices, and pulses contributed to elevated inflationary pressures.
RBI MPC: What happened last time
In the previous MPC press conference, Governor Das highlighted a softening trend in core inflation to 4.9 percent during July-August 2023. Providing a forward-looking perspective, he stated, “Considering these factors, CPI inflation is projected at 5.4 percent for 2023-24, with Q2 at 6.4 percent, Q3 at 5.6 percent, and Q4 at 5.2 percent. The risks are evenly balanced. CPI inflation for Q1:2024-25 is projected at 5.2 percent,” outlining the central bank’s inflation outlook for the coming quarters.
RBI MPC: What Governor Shaktikanta Das said today?
Addressing media on Friday, Governor Shaktikanta Das announced that the Monetary Policy Committee of Reserve Bank of India has decided to keep the repo rate unchanged at 6.5 per cent. This is a key lending rate. Apart from this, the MPC’s policy stance remained unchanged. The focus is on withdrawal of accommodation, Governor Das added.