RBI retains inflation projection for FY23 at 6.7%

The Reserve Bank on Friday retained its inflation projection for current fiscal year at 6.7 per cent amid global geopolitical developments triggered by Russia-Ukraine war.

RBI Governor Shaktikanta Das said the impact of inflation globally is weighing heavily on the domestic market.

For September quarter of 2022-23, RBI projected retail inflation at 7.1 per cent.

For third quarter, inflation is estimated at 6.5 per cent and further down to 5.8 per cent in March quarter with risks evenly balanced, the governor said.

For first quarter of next fiscal year, retail inflation is forecast at 5 per cent.

The RBI on Friday raised the benchmark lending repo rate by 50 basis points to 5.9 per cent.

The central bank has the mandate to keep retail inflation in a band of 2-6 per cent.