RBI Governor Shaktikanta Das on Thursday announced that CPI inflation is predicted to moderate near the 4.00 percent target in the second half of FY23 and give room for monetary policy to continue to be ‘accommodative’.
Das also noted that RBI has made steps to restrict disruption to economic activity. While CPI edged higher, it is along anticipated lines. Core inflation continues to be elevated and headline inflation is predicted to peak in Q4FY22, and turn moderate in H2GY23. Proceeded policy support is warranted for durable, broad-based recovery.
RBI maintains a CPI inflation forecast of 5.3 per cent for FY22. RBI anticipates that for FY23 CPI inflation at 4.5 per cent. RBI forecasts Q1FY23 CPI at 4.9 per cent, Q2 at 5 percent, Q3 at 4 per cent and Q4 at 4.2 per cent.
The decisions were made in a six-member MPC, led by RBI governor Shaktikanta Das, which met for three days from February 8.