rbi: Real GDP in the country (GDPConditions are being created for GDP growth to accelerate, but prolonged global tensions coupled with adverse weather events may pose a risk of inflation. This has been said in the April Bulletin of RBI. consumer price Index (CPI) based retail inflation declined to 4.9 percent in March. Earlier in the last two months it was on an average 5.1 percent. The Reserve Bank mainly takes into account retail inflation while determining its bi-monthly monetary policy. Citing concerns on the inflation front, the central bank has kept the repo rate stable at 6.5 percent from February 2023.
Why is RBI bulletin special?
The article titled ‘State of the Economy’ published in the Bulletin of the Reserve Bank says that summer is expected to remain in the spring of 2024. Actually, this indicates that March 2024 will be the hottest March in the last 170 years. The team led by Deputy Governor Michael Debabrata Patra has said in this article that a careful watch will have to be kept during the summer. Before the onset of monsoon, there is a possibility of shock in the prices of food items due to extreme heat. According to the article, however, prolonged geopolitical tensions coupled with adverse weather events in the near term could pose inflation risks. According to the RBI bulletin, conditions are being created for the extension of the turnaround in economic growth trend, which has taken average real GDP growth above eight percent during 2021-24.
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Population will continue to benefit till 2055
The article says that to achieve its developmental aspirations over the next three decades, the Indian economy will have to grow at 8-10 per annum to take advantage of its demographic advantages over the next decade. India will continue to get population related benefits till the year 2055. It said that the pace of global growth has remained intact in the first quarter of 2024 and the outlook for world trade is turning positive. Bond yields and loan interest rates are rising in major economies. The possibilities of reduction in interest rates have weakened. RBI has clarified that the views expressed in the bulletin are those of the authors and do not represent its official views.
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