New Delhi: On Thursday, the Reserve Bank of India (RBI) revised its inflation forecast for the fiscal year 2023-24, down by 10 basis points to 5.1 per cent.
The RBI in its Monetary Policy Committee (MPC) cut its inflation forecast to 5.1 per cent from 5.2 per cent as RBI Governor Shaktikanta Das shared positive feedback on the results being shown by the influential central bank’s monetary policies.
“The MPC will continue to be cautious on the evolving inflation and growth outlook. Das said it will take further monetary action promptly and appropriately to keep inflation expectations firm and bring inflation to the target.
New inflation rates set by RBI’s MPC
The inflation rate for the first quarter (April-June) of the financial year 2023-24 is 4.6 percent, for the second quarter (July-September) 5.2 percent, for the third quarter (October-December) 5.4 percent) and for the fourth quarter (January- 5.2 per cent for March).
It is to be noted that in the last MPC meeting held in April 2023, the RBI had projected an inflation rate of 5.1 per cent in the first quarter, 5.4 per cent in the second quarter, 5.4 per cent in the third quarter and 5.2 per cent in the third quarter. in the fourth quarter.
Around March-April of FY 2023, consumer price inflation (CPI) cooled down a bit and moved into the tolerance band to below 6.7 per cent in FY 2022-23.
However, according to Das, headline inflation is still above target and is expected to remain so as per RBI’s projections for the year 2023-24. He also said that inflation is likely to be around 4 per cent for the year 2023-24.
The Governor, Reserve Bank of India also expressed his concern over geopolitical tensions, uncertainties in the timing of monsoon and international commodity prices, especially sugar, rice and crude oil, and other problems related to global financial markets, which have implications for inflation. create risk.
“It will be important for the continued alignment of headline inflation with a durable deflation target in the core component,” Das said.