RBI May Raise Inflation Projection And Lower Down Growth Forecasts For Fy23:SBI

The first monetary policy committee meet for the fiscal year 2023 has started and this is amid a time to confront inflation which has been the key agenda world over.

RBI May Raise Inflation Projection And Lower Down Growth Forecasts For Fy23:SBI

There are expectations that while interest rates shall not be tinkered with, there can be a change in monetary policy stance. The outcome of the ongoing meet shall be put up on Apri 8, 2022.

With Shaktikanta Das at the helm, there has been no revision in policy rates in the last 10 meets and the stance has also continued to be accommodative. The rates have since the outbreak of corona have been at a historic low of just 4%. There is a view by the country's leading lender that the RBI may increase inflation forecast and at the same time lower down the growth forecasts.

"Prolonged growth supportive stance may have created a signal extraction and coordination problem with administered rates being cut even as inflation has continued to tread up," SBI said in the report.
According to the report, real rates have been negative for a persistent period and "the RBI may like to create a discordant note by emphasising inflation as a threat but at the same time emphasising it is fully seized of it!"

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