New Delhi, August 10, 2023: Thematically RBI is looking extremely cautious and concerned about inflation. RBI is targeting an inflation of 4% and as of now, it’s way above that. Though inflation is within the tolerance band of 6%, hence the RBI has decided to keep the benchmark rates unchanged.
Since the withdrawal of Rs 2000 notes started, liquidity in the system has increased. To mitigate that, the RBI has temporarily increased the ICCR by 10%. However, it will be withdrawn on the 8th of September so that there is ample liquidity in the markets.
Recent increases in vegetable and food prices may take food inflation up but it seems like it is a temporary phenomenon, and it should come down shortly. Crude prices are inching up and inflation in Europe and the US remaining high may put some pressure on domestic inflation.
The RBI has guided that next year Q1 inflation would be 5.2%, hence in the next 9-12 months, rate cuts are unlikely. However, the growth forecast remains intact at 6.5%, which is the highest amongst all the large economies.
To boost infrastructure funding a lot of relaxations have been given to infrastructure debt funds and on digitalisation of economy the focus remains intact.
Corporate Comm India (CCI Newswire)
