Wednesday, Oct 21, 2020 | Last Update : 05:00 AM IST

195th Day Of Lockdown

Maharashtra1443409114960338084 Andhra Pradesh7192566588755981 Karnataka6406615157829286 Tamil Nadu6088555529389653 Uttar Pradesh4031013468595864 Delhi2827522506135401 West Bengal2603242287555017 Odisha222734190080912 Kerala204242131048772 Telangana1992761701091163 Bihar178882164537888 Assam169985139977655 Gujarat1332191132403417 Rajasthan1288591077181441 Haryana1237821059901307 Madhya Pradesh117588932382207 Punjab107096840253134 Chhatisgarh9856566860777 Jharkhand7770964515661 Jammu and Kashmir69832495571105 Uttarakhand4533233642555 Goa3107125071386 Puducherry2548919781494 Tripura2412717464262 Himachal Pradesh136799526152 Chandigarh112128677145 Manipur9791760263 Arunachal Pradesh8649623014 Nagaland5768469311 Meghalaya5158334343 Sikkim2707199431 Mizoram178612880
  Business   Economy  04 Apr 2019  RBI cuts inflation forecast to 2.9-3 pc for H1 FY20

RBI cuts inflation forecast to 2.9-3 pc for H1 FY20

PTI
Published : Apr 4, 2019, 12:38 pm IST
Updated : Apr 4, 2019, 12:42 pm IST

In its previous policy outcome in February, the RBI had projected retail inflation between 3.2-3.4 per cent for the first half of 2019-20.

 "Taking into consideration these factors and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.4 per cent in Q4:2018-19, 2.9-3.0 per cent in H1:2019-20 and 3.5-3.8 per cent in H2:2019-20, with risks broadly balanced," the RBI said. (Representational Image)

Mumbai: The Reserve Bank on Wednesday cut the retail inflation forecast to 2.9-3 per cent for the first half of current fiscal, mainly due to lower food and fuel prices as well as an expectation of a normal rainy season.

The RBI has reduced the key policy rate by 25 basis points to 6 per cent.

 

The inflation path during 2019-20 is likely to be shaped by several factors. First, low food inflation during January-February will have a bearing on the near-term inflation outlook. Second, the fall in the fuel group inflation witnessed at the time of the February policy has become accentuated, RBI said in its first bi-monthly monetary policy for 2019-20.

"Taking into consideration these factors and assuming a normal monsoon in 2019, the path of CPI inflation is revised downwards to 2.4 per cent in Q4:2018-19, 2.9-3.0 per cent in H1:2019-20 and 3.5-3.8 per cent in H2:2019-20, with risks broadly balanced," the RBI said.

In its previous policy outcome in February, the RBI had projected retail inflation between 3.2-3.4 per cent for the first half of 2019-20.

 

Among others, the apex bank said Consumer Price Index-based inflation, excluding food and fuel, in February was lower than expected, which has imparted some downward bias to headline inflation.

Meanwhile, international crude oil prices have increased by around 10 per cent since the last policy announcement.

Tags: rbi, repo rate, interest rate, shaktikanta das, inflation, gdp growth, economy
Location: India, Maharashtra, Mumbai (Bombay)