Extreme weather may pose risk to inflation: RBI Bulletin
Upstox
2 min read • Updated: April 23, 2024, 4:57 PM
Summary
The Reserve Bank, which mainly factors in CPI while arriving at its bi-monthly monetary policy, has kept the key interest rate unchanged at 6.5% since February 2023, citing concerns on the inflation front.
The Reserve Bank of India on Tuesday said that extreme weather conditions may threaten inflation. It also stated that the prolonged geopolitical tensions tensions could cause oil price volatility
According to the central bank's April Bulletin, the consumer price index (CPI)-based retail inflation eased to 4.9% in March after averaging 5.1% in the preceding two months.
The Reserve Bank, which mainly factors in CPI while arriving at its bi-monthly monetary policy, has kept the key interest rate unchanged at 6.5% since February last year, citing concerns on the inflation front.
An article on 'State of the Economy' published in the Bulletin stated that global growth momentum has been sustained in the first quarter of 2024, and the outlook for world trade is turning positive.
Treasury yields and mortgage rates are ticking up in major economies as expectations of interest rate cuts are being pared.
"In India, conditions are shaping up for an extension of a trend upshift in real GDP growth, backed by strong investment demand and upbeat business and consumer sentiments," the article said.
The RBI, however, said the views expressed in the Bulletin article are of the authors and do not represent the views of the Reserve Bank of India.
With PTI inputs