Key Numbers You Can't Miss From RBI Monetary Policy Decisions

Reserve Bank of India’s Governor Shaktikanta Das on Thursday said India’s current account deficit (CAD), a key external sector indicator, is likely to remain moderate in the January-March quarter of FY 2022-23 and also eminently manageable going forward.

RBI remains watchful and focused on maintaining stability of the Indian rupee, he added.

The RBI projected marginal easing in retail inflation to 5.2% in the current fiscal, but cautioned that the fight against inflation is far from over.

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Although the central bank pared its inflation estimate from its February projection of 5.3%, Das said the inflation outlook remains dynamic amid the recent jump in crude oil prices on account of OPEC decision to cut output.

Key Numbers: RBI Monetary Policy

• Benchmark lending rate (repo rate) unchanged at 6.50%
• RBI projects 6.5% economic growth for 2023-24, better than 6.4% projected in February
• Inflation to be 5.2% in 2023-24, against 5.3% estimated in February
• CAD to remain moderate in Q4:2022-23 and in the year 2023-24 at a level that is both viable, eminently manageable
• Fight against inflation far from over, inflation outlook dynamic amid sudden announcement of crude output cut by OPEC+
• War against inflation has to continue until RBI sees a durable decline in inflation closer to the target
• Expectation of a record Rabi harvest bodes well for easing of food price pressures, milk prices likely to remain firm going into the summer season due to tight demand-supply balance and fodder cost pressures
• Protracted geopolitical tensions and global financial market volatility pose downside risks to growth outlook
• Witnessing unprecedented uncertainties in geopolitics and economy
• Global economy confronted with serious financial stability challenges in wake of recent banking sector developments in advanced countries
• Regulators need to identify potential vulnerabilities and take proactive regulatory and supervisory measures
• Institutions should exercise due diligence in risk management, corporate governance practices; pay close attention to asset-liability mismatches, build up adequate capital buffers
• RBI keeping a close watch on the banking sector turmoil in some developed countries
• RBI to set up centralised portal for public to search unclaimed deposits in multiple banks
• Indian Rupee moved in an orderly manner in 2022 and continues to be so in 2023, RBI remains watchful on maintaining stability
• Next meeting of the monetary policy committee scheduled for June 6-8, 2023.

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