Indian Rupee moved in an orderly manner in 2022 and continues to be so in 2023, RBI remains watchful on maintaining stability.
Reserve Bank of India’s Governor Shaktikanta Das on Thursday said India’s current account deficit (CAD), a key external sector indicator, is likely to remain moderate in the January-March quarter of FY 2022-23 and also eminently manageable going forward.
RBI remains watchful and focused on maintaining stability of the Indian rupee, he added.
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The RBI projected marginal easing in retail inflation to 5.2% in the current fiscal, but cautioned that the fight against inflation is far from over.
Although the central bank pared its inflation estimate from its February projection of 5.3%, Das said the inflation outlook remains dynamic amid the recent jump in crude oil prices on account of OPEC decision to cut output.
Key Numbers: RBI Monetary Policy
- Benchmark lending rate (repo rate) unchanged at 6.50%
- RBI projects 6.5% economic growth for 2023-24, better than 6.4% projected in February
- Inflation to be 5.2% in 2023-24, against 5.3% estimated in February
- CAD to remain moderate in Q4:2022-23 and in the year 2023-24 at a level that is both viable, eminently manageable
- Fight against inflation far from over, inflation outlook dynamic amid sudden announcement of crude output cut by OPEC+
- War against inflation has to continue until RBI sees a durable decline in inflation closer to the target
- Expectation of a record Rabi harvest bodes well for easing of food price pressures, milk prices likely to remain firm going into the summer season due to tight demand-supply balance and fodder cost pressures
- Protracted geopolitical tensions and global financial market volatility pose downside risks to growth outlook
- Witnessing unprecedented uncertainties in geopolitics and economy
- Global economy confronted with serious financial stability challenges in wake of recent banking sector developments in advanced countries
- Regulators need to identify potential vulnerabilities and take proactive regulatory and supervisory measures
- Institutions should exercise due diligence in risk management, corporate governance practices; pay close attention to asset-liability mismatches, build up adequate capital buffers
- RBI keeping a close watch on the banking sector turmoil in some developed countries
- RBI to set up centralised portal for public to search unclaimed deposits in multiple banks
- Indian Rupee moved in an orderly manner in 2022 and continues to be so in 2023, RBI remains watchful on maintaining stability
- Next meeting of the monetary policy committee scheduled for June 6-8, 2023.
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