RBI MPC 2022: Central bank pegs GDP growth at 4.4% for Q3FY23; 6.8% for FY23
RBI MPC meeting December 2022: RBI had pegged GDP growth forecast at 13.5 per cent in Q1 and 6.3 per cent in Q2. Governor Shaktikanta Das stated that real GDP growth has been projected at 7.1 per cent for Q1FY24 and 5.9 per cent for Q2FY24 respectively.
- Dec 7, 2022,
- Updated Dec 7, 2022 12:22 PM IST
RBI MPC announcements: Reserve Bank of India (RBI) pegged GDP growth at 4.4 per cent for Q3FY23 and 4.2 per cent for Q4FY23, Governor Shaktikanta Das said in his monetary policy statement on Wednesday. RBI had pegged GDP growth forecast at 13.5 per cent in Q1 and 6.3 per cent in Q2. The RBI also pegged real GDP growth forecast at 6.8 per cent for FY23.
Moving ahead, the RBI boss stated that real GDP growth has been projected at 7.1 per cent for Q1FY24 and 5.9 per cent for Q2FY24 respectively.
"Food, energy security together with climate change have become biggest challenges to the world. In this hostile environment, Indian economy remains resilient, drawing strength from macroeconomic fundamentals", Das said. He added, "India is widely seen as a bright spot in an otherwise gloomy world."
Shaktikanta Das said that inflation is expected to remain above 4 per cent for the next 12 months. Das said CPI inflation forecast for October to December '22 has been raised to 6.6 per cent from 6.5 per cent.
The RBI raised CPI inflation forecast for Jan-Mar '23 to 5.9 per cent. The central bank retained CPI inflation forecast for Apr-Jun '23 at 5 per cent and pegged it at 5.4 per cent for Jul-Sept '23.
Furthermore, the RBI also hiked repo rate by 35 basis points to 6.25 per cent in a bid to tackle inflation. This implies that home and car loans are likely to get costlier.
He said, "MPC has decided to increase policy repo rate by 35 basis points to 6.25% with immediate effect. I think this is one occasion where market expectations and MPC decisions are by and large aligned."
"MPC has also decided to continue to remain focused on withdrawal of accommodation to ensure inflation remains within target going forward, while supporting growth" , Das noted.
The governor said inflation remains high and broad-based across the world, adding that the International Monetary Fund (IMF) has projected more than one-third of the global economy will contract either this year or next year.
Meanwhile, the World Bank said India’s GDP is expected to grow at 6.9 per cent in FY23 compared to 8.7 per cent in FY22. It added that India is affected by the developments in the US, Euro area, and China.
World Bank senior economist Dhruv Sharma said, “India is more resilient now than it was 10 years ago. All steps taken over the past 10 years are helping India navigate the global headwinds.”
India Ratings & Research chief economist DK Pant said Q2 inflation and GDP numbers are in line with RBI’s forecast. In its September monetary policy committee meeting, the central bank predicted GDP growth at 7 per cent in 2022-23– 6.3 per cent in Q2 and 4.6 per cent each in Q3 and Q4. The GDP growth for Q2FY23 slowed to 6.3 per cent versus 13.5 per cent in the preceding three months.
"Real GDP or GDP at Constant (2011-12) Prices in Q2 2022-23 is estimated at Rs 38.17 lakh crore, as against Rs 35.89 lakh crore in Q2 2021-22, showing a growth of 6.3 per cent as compared to 8.4 per cent in Q2 2021-22," the National Statistical Office (NSO) said while releasing the data on estimates of Gross Domestic Product (GDP) for the second quarter.
Global rating agency Fitch kept India’s GDP growth forecast at 7 per cent in FY23, at 6.2 per cent in FY24 and 6.9 per cent in FY25. The rating agency said, “India is expected to record one of the fastest growth rates among emerging markets.”
Housing.com Group CEO Dhruv Agarwala said, “While a slower GDP growth rate and rising interest rates are definitely worrisome for all industries, as far as the realty sector is concerned, there may be a short-term impact on the sector but its long-term growth remains intact.”
Also read: RBI hikes repo rate by 35 bps to 6.25%
RBI MPC announcements: Reserve Bank of India (RBI) pegged GDP growth at 4.4 per cent for Q3FY23 and 4.2 per cent for Q4FY23, Governor Shaktikanta Das said in his monetary policy statement on Wednesday. RBI had pegged GDP growth forecast at 13.5 per cent in Q1 and 6.3 per cent in Q2. The RBI also pegged real GDP growth forecast at 6.8 per cent for FY23.
Moving ahead, the RBI boss stated that real GDP growth has been projected at 7.1 per cent for Q1FY24 and 5.9 per cent for Q2FY24 respectively.
"Food, energy security together with climate change have become biggest challenges to the world. In this hostile environment, Indian economy remains resilient, drawing strength from macroeconomic fundamentals", Das said. He added, "India is widely seen as a bright spot in an otherwise gloomy world."
Shaktikanta Das said that inflation is expected to remain above 4 per cent for the next 12 months. Das said CPI inflation forecast for October to December '22 has been raised to 6.6 per cent from 6.5 per cent.
The RBI raised CPI inflation forecast for Jan-Mar '23 to 5.9 per cent. The central bank retained CPI inflation forecast for Apr-Jun '23 at 5 per cent and pegged it at 5.4 per cent for Jul-Sept '23.
Furthermore, the RBI also hiked repo rate by 35 basis points to 6.25 per cent in a bid to tackle inflation. This implies that home and car loans are likely to get costlier.
He said, "MPC has decided to increase policy repo rate by 35 basis points to 6.25% with immediate effect. I think this is one occasion where market expectations and MPC decisions are by and large aligned."
"MPC has also decided to continue to remain focused on withdrawal of accommodation to ensure inflation remains within target going forward, while supporting growth" , Das noted.
The governor said inflation remains high and broad-based across the world, adding that the International Monetary Fund (IMF) has projected more than one-third of the global economy will contract either this year or next year.
Meanwhile, the World Bank said India’s GDP is expected to grow at 6.9 per cent in FY23 compared to 8.7 per cent in FY22. It added that India is affected by the developments in the US, Euro area, and China.
World Bank senior economist Dhruv Sharma said, “India is more resilient now than it was 10 years ago. All steps taken over the past 10 years are helping India navigate the global headwinds.”
India Ratings & Research chief economist DK Pant said Q2 inflation and GDP numbers are in line with RBI’s forecast. In its September monetary policy committee meeting, the central bank predicted GDP growth at 7 per cent in 2022-23– 6.3 per cent in Q2 and 4.6 per cent each in Q3 and Q4. The GDP growth for Q2FY23 slowed to 6.3 per cent versus 13.5 per cent in the preceding three months.
"Real GDP or GDP at Constant (2011-12) Prices in Q2 2022-23 is estimated at Rs 38.17 lakh crore, as against Rs 35.89 lakh crore in Q2 2021-22, showing a growth of 6.3 per cent as compared to 8.4 per cent in Q2 2021-22," the National Statistical Office (NSO) said while releasing the data on estimates of Gross Domestic Product (GDP) for the second quarter.
Global rating agency Fitch kept India’s GDP growth forecast at 7 per cent in FY23, at 6.2 per cent in FY24 and 6.9 per cent in FY25. The rating agency said, “India is expected to record one of the fastest growth rates among emerging markets.”
Housing.com Group CEO Dhruv Agarwala said, “While a slower GDP growth rate and rising interest rates are definitely worrisome for all industries, as far as the realty sector is concerned, there may be a short-term impact on the sector but its long-term growth remains intact.”
Also read: RBI hikes repo rate by 35 bps to 6.25%