The RBI has lowered the inflation estimate to 5 per cent for the quarter ending in March.
New Delhi. The Reserve Bank of India (RBI) has announced the first monetary policy for the financial year 2021-22 on Wednesday. At the same time, the RBI said that it expects retail inflation to remain at 5.2 per cent in the first half of the current financial year 2021-22 (FY22).
Retail inflation to remain at 5% in fourth quarter of FY 2021
With this, the RBI has reduced the inflation estimate to 5 percent during the quarter ended in March. Earlier, the RBI had projected retail inflation to be 5.2 per cent in the fourth quarter of 2020-21.
RBI Governor Shaktikanta Das on Wednesday announced the first policy review of the current financial year, stating that key inflation remained at the five per cent level in February 2021, although some factors challenged the easing of the upper limit (4 + 2%). Are generated. He said that the situation of food inflation going forward will depend on the progress of monsoon.
Repo rate remains at 4 percent
The RBI has retained the key repo rate at four per cent to support the increase. Das said that due to the coordinated efforts by the Center and the states, there has been some relief from domestic tax on petroleum products.
He said that keeping in mind all these factors, CPI inflation has been revised to 5 per cent in the fourth quarter of the financial year 2020-21. Similarly, inflation estimates are 5.2 per cent for the first and second quarter of FY 2021-22, 4.4 per cent for the third quarter and 5.1 per cent for the fourth quarter.