Extreme weather may pose risk to inflation: RBI Bulletin

NEW DELHI: Extreme weather conditions along with escalated geopolitical tension that could increase the crude oil prices may pose a risk to inflation as per the Reserve Bank’s April Bulletin released on Tuesday. The retail inflation based on the Consumer Price Index (CPI) has declined to 4.9 per cent in March from 5.1 in the preceding two months.
Earlier this month, the central bank kept the repo rate steady at 6.5 per cent, citing concerns about inflation.
An article on ‘State of the Economy’ in the Bulletin stated that world trade forecast is positive and global growth momentum has been sustained in the first quarter of 2024.
Additionally. treasury yields and mortgage rates are increasing around the world as rate cuts expectations are diminishing.
“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 said.
However, the central bank said that the views expressed in the Bulletin article are of the authors and do not represent the views of the Reserve Bank of India.

Leave a Comment

Your email address will not be published. Required fields are marked *