RBI MPC announcements: Reserve Bank of India RBI pegged GDP growth at 4.4 per cent for Q 3 FY 23 and 4.2 per cent for Q 4 FY 23, Governor Shaktikanta Das said in his monetary policy statement on Wednesday. RBI had predicted GDP growth at 13.5 per cent in Q 1 and 6.3 per cent in Q 2. The RBI pegged real GDP growth forecast at 6.8 per cent for FY 23.
The RBI boss stated that real GDP growth was projected at 7.1 per cent for Q 1 FY 24 and 5.9 per cent for Q 2 FY 24 respectively.
Food, energy, and climate change are some of the biggest challenges to the world. The Indian economy remains resilient in this hostile environment, based on macroeconomic fundamentals that Das said. India is seen as a bright spot in an otherwise gloomy world, he said. Shaktikanta Das said that inflation is expected to remain above 4 per cent for the next 12 months. Das said that the inflation forecast for October to December '22 has been raised to 6.6 per cent from 6.5 per cent.
The RBI raised the inflation forecast for Jan-Mar '23 to 5.9 per cent. The central bank retained the CPI inflation forecast for Apr-Jun '23 at 5 per cent, and pegged it at 5.4 per cent for Jul-Sept '23.
The RBI also increased the repo rate by 35 basis points to 6.25 per cent in a bid to tackle inflation. Home and car loans are likely to be more costlier, because of this.
He said that MPC has decided to increase policy repo rate by 35 basis points to 6.25% with immediate effect. I think this is a case where market expectations and MPC decisions are by and large aligned. MPC has decided to keep its focus on withdrawal of accommodation to make sure inflation stays within target going forward, while supporting growth Das noted.
The International Monetary Fund IMF has projected that more than one-third of the global economy will contract this year or next year, and that is why the governor said inflation remains high and broad-based across the world.
In FY 23 India's GDP is expected to grow at 6.9 per cent, compared to 8.7 per cent in FY 22, according to the World Bank. It added that India is affected by the developments in the US, the Euro area, and China.
India is more resilient now than it was 10 years ago, according to World Bank senior economist Dhruv Sharma. India Ratings Research chief economist DK Pant said that Q 2 inflation and GDP numbers are in line with RBI's forecast. In its September monetary policy committee meeting, the central bank predicted GDP growth at 7 per cent in 2022 -- 23 6.3 per cent in Q 2 and 4.6 per cent each in Q 3 and Q 4. The GDP growth for Q 2 FY 23 slowed to 6.3 per cent, compared to 13.5 per cent in the previous three months.
The National Statistics Office NSO said the real GDP or GDP at Constant 2011- 12 prices in Q 22022-23 is estimated at Rs 38.17 lakh crore, compared to Rs 35.89 lakh crore in Q 22021- 22, showing a growth of 6.3 per cent as opposed to 8.4 per cent in Q 2 2021-23.
In FY 23 India's GDP growth forecast was kept by global rating agency Fitch at 7 per cent, at 6.2 per cent in FY 24 and 6.9 per cent in FY 25. The rating agency said India is expected to record one of the fastest growth rates among emerging markets. As far as the realty sector is concerned, there may be a short-term impact on the sector, but the long-term growth remains intact, according to Housing.com Group CEO Dhruv Agarwala.