RBI Pegs GDP Growth At 7.8 Pc For FY23, Q1FY23 Growth Seen At 17.2 Pc
New Delhi, Feb 10: The Reserve Bank of India (RBI) on Thursday projected the economic growth for financial year 2022-23 at 7.8 per cent. Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said that there is some loss of the momentum of near-term growth while global factors are turning adverse.
“Looking ahead, domestic growth drivers are gradually improving. Considering all these factors, real GDP growth is projected at 7.8 per cent for 2022-23 with Q1:2022-23 at 17.2 per cent; Q2 at 7.0 per cent; Q3 at 4.3 per cent; and Q4 at 4.5 per cent,” the RBI Governor said.
On expected lines, RBI has kept the policy repo rate unchanged at 4 per cent to support economic growth. Based on the current macro economic situation and outlook, the rate-setting panel led by Governor Shaktikanta Das unanimously decided to keep the key policy repo rate unchanged.
The MPC also decided by a majority of 5 to 1 to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of Covid 19 on the economy while ensuring that inflation remains within the target going forward.
The central bank retained inflation estimate for 2021-22 at 5.3 per cent, with Q4 at 5.7 per cent on account of unfavourable base effects that ease subsequently. Retail inflation for January 2022 is expected to move closer to the upper tolerance band of 6 per cent, largely due to adverse base effects. Taking various factors in account and on the assumption of a normal monsoon, the central bank expects CPI inflation for 2022-23 to be at 4.5 per cent with first quarter inflation seen at 4.9 per cent, second quarter at 5 per cent, third quarter at 4 per cent and fourth quarter at 4.2 per cent with risks broadly balanced.
