The Reserve Bank of India (RBI) has marginally increased its real GDP growth projection for FY24 to 6.5 per cent from its earlier projection of 6.4 per cent.
The central bank has also revised its FY24 retail inflation projection a shade lower to 5.2 per cent from its earlier projection of 5.3 per cent.
At the end of the 3-day long meeting of the Monetary Policy Committee, RBI Governor Shaktikanta Das said real GDP growth for 2023-24 is projected at 6.5 per cent with Q1 at 7.8 per cent (unchanged vis-a-vis earlier projection); Q2 at 6.2 per cent (unchanged); Q3 at 6.1 per cent (6.0 per cent); and Q4 at 5.9 per cent (5.8 per cent), with the risks are evenly balanced.
What does the latest GDP data tell us about India’s macroeconomic numbers?
CPI inflation is projected at 5.2 per cent for 2023-24 (5.3 per cent), with Q1 at 5.1 per cent (5.0 per cent), Q2 at 5.4 per cent (unchanged), Q3 at 5.4 per cent (unchanged) and Q4 at 5.2 per cent (5.6 per cent), with the risks are evenly balanced.
“With unyielding core inflation, we remain firm and resolute in our pursuit of price stability, which is essential for growth,” Das said.
Repo Rate
The six-member rate-setting monetary policy committee (MPC) of RBI voted unanimously to hold the policy repo rate at 6.50 per cent.
The MPC, in its first meeting of FY24, also voted by a majority of 5 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation remains within the target.