RBI revises inflation and growth forecasts; holds policy rates

In its first monetary policy announcement of 2022-23, the RBI projected inflation to be at 5.7 per cent this financial year. Real GDP growth for the year estimated at 7.2 per cent

Reserve Bank of India's (RBI) six-member monetary policy committee (MPC) on Friday voted unanimously to keep the policy repo rate unchanged at 4 per cent and decided to remain accommodative but focus on withdrawal of accommodation to ensure inflation remains within the target while also supporting growth.

With the volatile external environment due to the geo-political situation in eastern Europe posing a downside risk to downside risks to domestic growth and upside risk to inflation projections, the RBI has revised its inflation projection upwards and sharply cut its growth projections for the economy in the current financial year.

RBI is projecting inflation