RBI retains FY23 inflation projection at 6.7%

In its previous monetary policy review in June, it had projected retail inflation for 2022-23 at 6.7 per cent, up from 5.7 per cent forecast in April

A man walks past the logo of Reserve Bank of India (RBI) inside its headquarters in Mumbai. Credit: Reuters Photo

The RBI on Friday retained its retail inflation forecast for the current fiscal year at 6.7 per cent amid geopolitical developments and higher global commodity prices, hoping inflationary pressures to ease further.

In its previous monetary policy review in June, it had projected retail inflation for 2022-23 at 6.7 per cent, up from the 5.7 per cent forecast in April.

Also Read | RBI hikes key lending rate by 50 bps to 5.4% to tame prices

The RBI raised the benchmark lending repo rate by 50 basis points to 5.40 per cent.

RBI Governor Shaktikanta Das said inflation in the second and third quarters of the ongoing fiscal year is expected to remain above the upper tolerance level of 6 per cent.

The central bank aims to keep retail inflation in a band of 2-6 per cent.