Highlights
- RBI Governor Cuts CPI Inflation Forecast for 2023-24 to 5.2%
- Quarterly CPI Inflation Forecast for 2023-24 Revealed
- Gradual Disinflation Expected, says RBI Governor
- RBI MPC Keeps Policy Rate Unchanged, but Inflation Battle Continues
The Reserve Bank of India (RBI) Governor, Shaktikanta Das, has announced a cut in the Consumer Price Index (CPI) inflation forecast for 2023-24. The revised forecast has been reduced to 5.2% from the previous estimate of 5.3%. The announcement came after the Monetary Policy Committee (MPC) meeting, which was held on April 6, 2023.
According to the RBI Governor, the quarterly CPI inflation forecast for 2023-24 has been revealed as follows:
- April-June 2023 CPI inflation forecast raised to 5.1% from 5.0%
- July-September 2023 CPI inflation forecast retained at 5.4%
- October-December 2023 CPI inflation forecast retained at 5.4%
- January-March 2024 CPI inflation forecast lowered to 5.2% from 5.6% previously
Governor Das also stated that disinflation is likely to be gradual and protracted. This means that while the RBI has revised its inflation forecast downwards, it expects a slow and prolonged decline in inflation. The RBI will continue to monitor inflation closely and take appropriate measures to tackle it.
Although the MPC has kept the policy rate unchanged, Governor Das emphasized that the battle against inflation must continue. The RBI will work towards achieving a durable decline in inflation that is closer to the target. Inflation management will continue to be a top priority for the RBI.
In conclusion, the RBI Governor’s announcement of a cut in CPI inflation forecast for 2023-24 is good news for the economy. However, the RBI remains cautious and vigilant as it expects a slow and prolonged disinflation process. The central bank will continue to work towards achieving its inflation targets and keeping the economy stable.
