IGI Logo

Below View On RBI's monetary policy By Rajani Sinha, Chief Economist, CareEdge Ratings

"While the RBI decided to keep the policy rates unchanged for the second consecutive meeting, it has continued to emphasize on bringing the retail inflation closer to the target of 4%. Amid a volatile global economic scenario and lingering risks to domestic inflation, it is prudent that the RBI has followed a wait-and-watch strategy. While RBI has marginally lowered the CPI inflation projection for FY24 to 5.1%, it has emphasized on the inflationary risks. The policy stance on ‘withdrawal of accommodation’ is reflective of RBI’s guarded approach towards inflation as it reiterated that inflation remains above target and remaining within the tolerance band is not enough. Going ahead, with the domestic growth holding up well, we have raised our GDP growth projection to 6.5% for FY24 (from previous projection of 6.1%). With concerns on growth front abating and CPI inflation likely to remain above the 4% target, we expect a status quo on the policy rates in 2023", said Rajani Sinha, Chief Economist, CareEdge.

Above views are of the author and not of the website kindly read disclaimer