RBI MPC: CPI projection is revised to 5.4%, says Governor Shaktikanta Das
RBI) gain kept the policy rates unchanged at 6.5%. The repo rate is the rate of interest at which RBI lends to other banks."Our economy has continued to grow at a reasonable pace becoming the 5th largest economy in the world, contributing around 15% to global growth," said RBI Governor Shaktikanta Das. Talking about inflation, Das said headline inflation after reaching a low of 4.3% in May, rose in June, and will surge in July and August, said.
The central bank has raised the inflation forecast from 5.1% to 5.4%. While announcing the MPC decisions, Das said that weather conditions and food prices need to be monitored closely. He added that the global economy continues to face extreme weather conditions and inflation challenges.
July-September 2023 6.2 percent October-December 2023 5.7 percent January-March 2024 5.2% April-June 2024 5.2% Sandeep Bagla CEO Trust Mutual Funds “It is a cautious wait-and-watch policy, with macros having turned negative since the last announcement in June. Oil prices, food prices have all gone up. Inflation expectations have gone up as well.
RBI has imposed additional cash reserve requirements on incremental bank deposits. In July CPI headline reading will go up to close to 6.50%. The next few months would be a good opportunity to add duration to the portfolio with a 12-month investment horizon.
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