Achi news desk-
Das emphasized the need to remain vigilant about food prices, given the forecast for higher temperatures between April and June
The central bank on Friday kept its inflation forecast unchanged at 4.5% for the current fiscal year, lower than 5.4% in the last budget.
Speaking after the Monetary Policy Committee meeting in Mumbai on Friday, RBI Governor Shaktikanta Das said assuming a normal monsoon this year, CPI inflation for the current year is expected to be 4.5%, with Q1 at 4.9%. , Q2 by 3.8 percent, Q3 by 4.6 percent, and Q4 by 4.5 percent.
The governor also emphasized the need to remain vigilant about food prices, given the forecast for higher temperatures between April and June. He also said that the effect of reducing fuel prices on inflation will deepen in the coming months.
The RBI kept its GDP growth forecast at 7 percent for FY2024-25, lower than the 7.6 percent expansion estimated for FY24. Also, as expected, the central bank kept the policy rate unchanged at 6.5 percent.
Das said rural demand is increasing, and continued growth in the manufacturing sector should boost private investment.
In other decisions, RBI proposes to allow cash deposits through UPI. It will also launch a mobile application to facilitate retail participation in the government securities market.
Published: April 5, 2024, 11:24 am IST
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