Representational file picture.
| Photo Credit: B. Jothi Ramalingam
Extreme weather situations may pose a risk to inflation, together with extended geopolitical tensions that would hold crude oil costs unstable, the Reserve Bank’s April Bulletin stated on April 23.
The retail primarily based on the Consumer Price Index (CPI) has eased to 4.9% in March after averaging 5.1% within the previous two months.
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The Reserve Bank, which primarily elements in CPI whereas arriving at its bi-monthly financial coverage, has saved the important thing rate of interest unchanged at 6.5% since February 2023, citing issues on the inflation entrance.
An article on ‘State of the Economy’ printed within the Bulletin additional stated world development momentum has been sustained within the first quarter of 2024, and the outlook for world commerce is popping constructive.
Treasury yields and mortgage charges are ticking up in main economies as expectations of rate of interest 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 stated.
The RBI, nevertheless, stated the views expressed within the Bulletin article are of the authors and don’t symbolize the views of the Reserve Bank of India.
