‘All is well for Kharif crops’: RBI Governor
RBI Governor Shaktikanta Das has projected CPI headline inflation to be at 5.1% for FY2023 assuming a normal monsoon in India. He also stated that the Indian economy and financial sector are strong and resilient. The repo rate remains unchanged at 6.5%.
Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday said that CPI headline inflation is projected at 5.1% for FY2023 after assuming a normal monsoon in the country. He also said, ‘all is well for Kharif crops’.
“All is well for Kharif crops. Uncertainiltuy however remain on special and temporal distribution of monsoon, and Al Nino. Taking into account all factors and assuming a normal monsoon, CPI headline inflation is projected at 5.1% for 2023-24,” Shaktikanta Das said.
He stated that Consumer Price Inflation eased during March-April 2023 and moved into the tolerance band, declining from 6.7% in 2022-23 in India.
“Headline inflation, however, is still above the target as per the latest data and is expected to remain so according to our projections for 2023-24. As per our assessment, inflation will remain above 4% throughout 2023-24,” he added.
He stated Indian economy and financial sector stand out as strong and resilient.
“The domestic macroeconomic fundamentals are strengthening. Current account deficit is expected to have moderated and remain eminently manageable in 2023-24. The rupee remained stable since January this year and India’s foreign exchange reserves stood at $595.1 billion as on June 2,” he added.
RBI cuts CPI inflation forecast for FY24 to 5.1% from 5.2% earlier. CPI inflation forecast for Q1FY24 cut to 4.6% from 5.1%, while for Q2FY24 it is reduced to 5.2% from 5.4%.
CPI inflation forecast for Q3FY24 and Q4FY24 are retained at 5.4% and 5.2%, respectively.
“MPC decides to keep repo rate unchanged at 6.5%, Standing Deposit Facility Rate remains at 6.25%. Marginal Standing Facility Rate and Bank Rate unchanged at 6.75%,” the RBI Governor announced.
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First Published:8 Jun 2023, 10:45 AM IST
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