RBI ups inflation target for FY23 to 5.7 pc on rising global prices amidst geo-political tensions


PTI, Apr 8, 2022, 11:09 AM IST

New Delhi: The Reserve Bank of India on Friday raised the retail inflation target for the current financial year to 5.7 percent on the back of rising global prices amidst the ongoing geo-political tensions, even as it expected the prices of cereals and pulses to soften on prospects of good winter crop harvest.

”Global food prices along with metal prices have hardened significantly. Economy is grappling with a sharp rise in inflation… Inflation is now projected at 5.7 percent in 2022-23 with Q1 at 6.3 percent; Q2 at 5 percent; Q3 at 5.4 percent and Q4 at 5.1 percent,” RBI Governor Shaktikanta Das said while unveiling the first monetary policy review for the current fiscal year.

In its earlier policy review in February, the RBI had projected retail inflation to be at 4.5 percent in 2022-23.

The apex bank kept the benchmark interest rate — repo, at which it lends short-term money to banks — unchanged at 4 percent.

The Monetary Policy Committee (MPC) also decided unanimously to remain accommodative, while focussing on withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth.

This is the 11th time in a row that the Monetary Policy Committee (MPC) headed by Das has maintained the status quo.

”It may, however, be noted that given the economic volatility on global crude oil prices… the evolving geopolitical tensions, any projection of growth and inflation is fraught with risk,” Das said.

RBI, however, hoped that the likely good harvest from the rabi (winter) crop will keep prices of cereals and pulses under check.

The Reserve Bank has been mandated to keep retail inflation at 4 percent with a bias of 2 percent on either side.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

10 month baby gets new heart, new life

Actress Kasthuri released from jail, says ‘I thank those who made me raging storm’

Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial

100 engineering colleges in Karnataka to be ‘adopted’ by corporates by next year: IT Minister Kharge

Siddaramaiah defends BPL ration card cancellation, says only ineligible beneficiaries affected

China announces new policy measures to protect its exports from Trump’s new tariff threat

Renovated Medical Oncology OPD and Chemotherapy Day Care Centre inaugurated at Kasturba Hospital, Manipal

Related Articles More

Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial

Gautam Adani charged in US with USD 250 mn bribery, fraud

India’s GDP growth likely to slip at 6.5 pc, maintains 7 pc estimate for FY25: Icra

RBI cautions public about ‘deepfake’ video of governor being circulated on social media

We disagree with decision, plan to appeal: Meta on CCI imposing Rs 213-cr penalty

MUST WATCH

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation

Geethotsava

Naxal Operation


Latest Additions

‘Bengaluru Chalo’ protest demand rejection of Kasturirangan Report

Mangaluru: Cyber frauds posing as TRAI representatives fleece Rs 1.71 crore

10 month baby gets new heart, new life

Saura Swasthya launched: Karnataka to power 5,000 health facilities with solar energy

India-US ties have strong foundation: White House confident in navigating crisis over Adani bribery charges

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.