RBI Projects 5.2 pc Inflation For FY24, 5.1 pc In Q1

The Reserve Bank of India today while releasing the Monetary Policy projected inflation at 5.2%, which was more or less in line with expectations. Global inflation has slowed down, but the road to the target is still long. Continue the fight against inflation. Despite slowing, headline inflation is still above target. A risk to the trajectory of inflation is adverse climate conditions.

In order to control inflation, the RBI's Monetary Policy Committee (MPC) decided to increase the repo rate by 25 basis points, to 6.5 percent, at its most recent meeting in early February. Since May 2022, the RBI has increased the repo rate-the interest rate at which it lends to banks-by a total of 250 basis points.

The Reserve Bank of India's monetary policy committee kept the repo rate unchanged at 6.5% after a unanimous decision.

India's current account deficit for the first three-quarters of FY23 was 2.7% of GDP. In the fourth quarter of FY 2022-23 as well as in FY24, it is anticipated that India's current account deficit will remain modest at a manageable level, according to RBI Governor Shaktikanta Das.

Mr. Cyrus Mody, Founder & Managing Partner, Viceroy Properties, said, "The RBI's announcement was a prudent one as the governor kept the repo rate unchanged at 6.5%, bringing the total hike since May 2022 to 250 basis points, including six hikes. The economy is showing signs of improvement but the central bank wants to keep inflation in check. It is expected that going ahead the RBI will pause the rates at this level and start easing the rates from CY25. The central bank is aiming to strike a balance between growth rate and inflation."

He added, "We hope that a regular monsoon year will help with lower inflation thereby ease in the interest rates. MMR as a market will continue to witness strong demand as various transit infrastructure projects see completion and commissioning in the next 12-18 months. Also, projects developed by reputed names will continue to see demand due to their quality construction and timely delivery."