At a gathering on Wednesday, State Bank of India (SBI) Chairman Dinesh Khara stated that the Reserve Bank of India is likely to keep things as they are in the upcoming monetary policy. The Reserve Bank of India’s Monetary Policy Committee will meet again from August 8–10, 2023, according to the timetable.
At a gathering hosted by the industry group CII in this city, he stated, “As a bank, we don’t don’t expect a rate cut, the status quo is likely to be maintained by the RBI.”
The Reserve Bank of India held its benchmark interest rate steady for a second consecutive policy meeting at its policy review meeting on June 8 but warned that it wanted to see inflation slow down much more while keeping a watch on the monsoon.
In its most recent bulletin, the RBI stated that increases in food prices in India, which are common around the start of the monsoon, contributed to headline inflation in June. This confirms the MPC’s assessment that the struggle against inflation is far from done.
The RBI stated in its piece on the state of the economy, which was included in its monthly bulletin, “Monetary policy must stay the course on the difficult last leg of the journey to align inflation with the target.”
Rising food costs caused India’s annual retail inflation rate to spike to 4.81% in June, ending four months of deceleration and eliminating any hope of a rate drop this year.
The RBI said that despite a distribution heavily skewed by cyclones, the rain deficit in India is swiftly decreasing and that industrial and service activities are still expanding, albeit with some sequential deceleration in June.
In terms of global growth, it was noted that although headline inflation was taming, core inflation was still stubbornly high, notably in manufacturing and investment.
But it reaffirmed its belief in India’s future.
Despite a sequential slowdown in economic growth in June, the central bank stated that “the Indian economy is poised to be the fastest-growing major economy in the world.”
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