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RBI lowers FY22 inflation projection to 5.3
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SME Times News Bureau | 08 Oct, 2021
The Reserve Bank of India on Friday lowered FY22 retail
inflation projection for the ongoing financial year to 5.3 per cent from
the previous estimate of 5.7 per cent.
In a virtual address post
the monetary policy meet, RBI Governor Shaktikanta Das said that
consumer price inflation softened during July-August, moving back into
the tolerance band with an easing of food inflation.
This is corroborating the Monetary Policy Committee's (MPC) assessment of the spike in inflation in May as transitory, he said.
Das cited moderation in food inflation as a key driver of the disinflation.
However,
he pointed out that fuel inflation edged up and CPI inflation excluding
food and fuel inflation (core inflation) remained elevated.
Besides, he expects a further softening can be expected in CPI-based inflation.
"Overall,
the CPI headline momentum is moderating which, combined with favourable
base effects in the coming months, could bring about a substantial
softening in inflation in the near-term," Das said.
He pointed
out that CPI inflation is projected at 5.1 per cent in Q2, 4.5 per cent
in Q3, and 5.8 per cent in Q4 of 2021-22, with risks broadly balanced.
The projection on inflation for Q1 of next fiscal (FY23) is 5.2 per cent.
"We
are watchful of the evolving inflation situation and remain committed
to bring it closer to the target in a gradual and non-disruptive
manner."
In a bid to continue with its growth supporting stance,
the RBI has retained its key short-term lending rates during the fourth
monetary policy review of FY22.
The MPC of the central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks, at 4 per cent.
The growth-oriented accommodative stance was retained to give a push to economic activity despite high retail inflation levels.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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