RBI MPC Meeting: Relief from inflation can be found by 2024, target of stopping inflation at 5 percent

The Reserve Bank of India (RBI) has announced the decisions taken on monetary policy today. Everyone's eyes were on the repo rate on this decision. RBI said that this time also there will be no change in the repo rate. That is, the repo rate will remain constant at 6.50 percent. Along with this, RBI Governor Shaktikanta Das has also announced the inflation rate. Let us know what he has told about the inflation rate.

The RBI governor said that the inflation forecast has come down marginally to 5.1 percent in the current financial year 2023-24.

In April this year, the central bank estimated consumer price index (CPI) based retail inflation at 5.2 percent. After this, the CPI has fallen sharply to 4.7 percent in April 2023. Earlier in February it was 6.4 percent.

Consumer price inflation in India has eased during March-April 2023. With this, the tolerance band has become 2-6 percent. Whereas in 2022-23 it was 6.7 percent. Announcing the second bi-monthly monetary policy for 2023-24, the RBI governor said that headline inflation is still above target as per new data. With this, it is expected to remain as per the estimates for 2023-24. It is very important to keep a close watch on rising inflation. Changes in inflation can be seen in the country due to monsoon and El Nino conditions.

The Reserve Bank of India has projected the Consumer Price Index (CPI) for 2023-24. This year's CPI inflation is projected at 5.1 percent. Which can be 4.6 percent in the first quarter, 5.2 percent in the second quarter, 5.4 percent in the third quarter, and 5.2 percent in the fourth quarter. This index has to be equally balanced with risk.

Regarding rising inflation, he said that there is a need to keep "Arjun's eye" on it. Headline inflation still remains above target. But this year the target of the central bank is to bring down the inflation rate to 4 percent.