By Malvika Gurung
Investing.com -- The Reserve Bank of India has lowered the country’s real GDP growth rate for the ongoing financial year (FY23) from 7% estimated at the last MPC policy meet outcome on Sept 30 to 6.8% on Dec 7.
Further, the quarterly GDP growth forecasts for FY23 have been revised too.
The central bank has lowered the GDP growth forecast for the third quarter of FY23, i.e. Oct-Dec 2022 period from 4.6% to 4.4%, and for Jan-Mar 2023 (Q4 FY23) to 4.2% from 4.6% earlier.
RBI has retained its CPI inflation forecast for FY23 at 6.7% while raising the projections for Q3 FY23 to 6.6% from 6.5% and Q4 from 5.8% to 5.9% on Wednesday’s policy outcome.
The central bank’s Monetary Policy Committee raised the repo rate by 35 bps to 6.25% on Dec 7, in line with Investing.com’s forecast, while raising the benchmark lending rate by 225 basis points since May.
The MPC has retained its ‘Withdrawal of Accommodation’ stance in a 4:6 vote, on the backdrop of the country’s retail inflation running past the RBI’s mandated tolerance band for the 10th consecutive month in Oct 2022.
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