RBI MPC meet LIVE: Inflation to remain higher than 4% target, says Das

To contain the inflation, the central bank this year has hiked the basic lending rate by 225 bps, from 4 per cent in April to 6.25 per cent in December. India’s retail inflation in the month of October stood at 6.77 per cent, softening from 7.79 per cent in September. While the RBI hiked the repo rate by 40 bps in the May MPC meeting, after that, the central bank increased the key interest rate by 50 basis points three times, in June, August, and September. 

The RBI MPC lowered the GDP growth forecast for October-December 2022 to 4.4%, while for January-March 2023, the forecast has been revised down to 4.2%. RBI Governor Shaktikanta Das said the GDP growth forecast for FY23 has been lowered to 6.8% from 7%. The policy committee raised the CPI inflation forecast for October-December 2022 to 6.6% from 6.5%, while for January-March 2023, it has been raised to 5.9% from 5.8%. Das said the CPI inflation forecast for April-June 2023 has been retained at 5.0% while it is seen at 5.4% in July-September 2023. Meanwhile, the CPI inflation forecast for FY23 has been retained at 6.7%.