Reserve Bank of India (RBI) Governor Shaktikanta Das
Shaktikanta Das has said that the central bank will ensure the availability of sufficient liquidity or cash to meet the productive needs of the economy.
reserve Bank of India (RBI) has retained the economic growth forecast of 7.2% for the current financial year (2022-23). The central bank has said that there has been an improvement in urban demand, while the situation of rural demand is also improving gradually, in view of which it has not changed the growth rate forecast. Reserve Bank Governor Shaktikanta Das ,Shaktikanta DasPresenting the third bi-monthly monetary review for the current financial year here on Wednesday, ) said the Indian economy remains strong and the central bank will continue to support growth.
The Reserve Bank has estimated that the growth rate of gross domestic product (GDP) will be 16.2 percent in the first April-June quarter of the current financial year. It will come down to 4 per cent in the fourth January-March quarter. However, the governor cautioned that there are risks on the growth front because of the Russo-Ukraine war.
Earlier, in April, the Reserve Bank had reduced the growth rate estimate for the current financial year to 7.2 percent. Earlier, the central bank had projected the growth rate to be 7.8 percent in 2022-23.
World Bank cuts GDP growth forecast
The World Bank on Wednesday reduced India’s growth forecast for the current financial year to 7.5 percent. India’s growth forecast has been cut in view of rising inflation, supply chain problems and geopolitical tensions.
Will ensure sufficient liquidity for the productive needs of the economy
Shaktikanta Das has said that the central bank will ensure the availability of sufficient liquidity or cash to meet the productive needs of the economy. Announcing the monetary policy here on Wednesday, Das said, going forward, the excessive liquidity provided due to the pandemic will be brought back to normal levels in several years’ time. However, at the same time, the central bank will ensure that sufficient cash is available for the productive needs of the economy.
He said that the Reserve Bank will focus on completing the government’s loan program in a systematic manner.
Repo rate hiked by 50 basis points
The Monetary Policy Committee (MPC) of the Reserve Bank has unanimously decided to increase the repo rate by half a percentage point to 4.90 percent.