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Home > News > India News > Article > RBI retains FY24 retail inflation forecast at 54 per cent

RBI retains FY24 retail inflation forecast at 5.4 per cent

Updated on: 09 December,2023 07:39 AM IST  |  Mumbai
Agencies |

The moderation in October inflation was observed in all components of CPI

RBI retains FY24 retail inflation forecast at 5.4 per cent

RBI Governor Shaktikanta Das with Deputy Governors Michael Debabrata Patra, M. Rajeshwar Rao, Swaminathan Janakiraman and T Rabi Shankar at the RBI headquarters. Pic/PTI

The Reserve Bank on Friday retained the retail inflation projection for the current fiscal at 5.4 per cent but said inflation may see an uptick in November and December due to pressure on food prices. “Going ahead, the inflation outlook would be considerably influenced by uncertain food prices. High-frequency food price indicators point to an increase in prices of key vegetables, which may push CPI inflation higher in the near term,” RBI Governor Shaktikanta Das said.

Retail or consumer price index-based CPI inflation moderated to 4.9 per cent in October from 7.4 per cent in July. The ongoing rabi sowing progress for key crops like wheat, spices and pulses needs to be closely monitored, Das said, adding elevated global sugar prices is also a matter of concern.

The RBI, in its bi-monthly policy statement, on Friday retained benchmark interest rates at 6.5 per cent for the fifth time in a row. The repo rate was last hiked in February. “Monetary policy must continue to be actively disinflationary to ensure fuller transmission and anchoring of inflation expectations,” the monetary policy statement said. The moderation in October inflation was observed in all components of CPI.

‘No plans to loosen rates’

Reserve Bank Governor Shaktikanta Das on Friday said there is no plan to loosen interest rates as inflation continues to be the top priority for the central bank. Speaking to reporters, Das clarified that the inclusion of “over tightening” in his statement while announcing the fifth consecutive status quo in rates, should not be construed as anything else.  Agencies

India’s forex reserves surpass $600 bn mark

India’s foreign exchange reserves increased to USD 604 billion as on December 1, surpassing the USD 600 billion mark after a gap of about four months. The forex reserves were last above the USD 600 billion mark on August 11 this year. “India’s foreign exchange reserves stood at USD 604 billion as on December 1, 2023. We remain confident of meeting our external financing requirements comfortably,” Reserve Bank Governor Shaktikanta Das said.

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