India's economy grew by 4.4% in the third quarter and is
expected to expand by 7% for the fiscal year ending March after
recording growth of 9.1% in 2021/22.
RBI said, while the direct impact of the recent bank
collapses in the United States on economic activity could be
limited, markets are bracing for tighter financial conditions
which could present a trade-off between financial stability
concerns and monetary policy.
"Yield curves are in deep inversion and the future looks
darker than it did just a few weeks ago in early February," the
RBI wrote, referring to the overall global context.
The bank said India had emerged from the pandemic years
stronger than initially thought with the agriculture sector
seeing a seasonal uptick, industry emerging out of contraction
and services maintaining momentum.
However, it raised concerns over sustained price rises
saying consumer price inflation remains high and core inflation
continues to defy the distinct softening of input costs.
Annual inflation in February eased only marginally to 6.44%
from 6.52% in January, staying above the central bank's mandated
target band of 2-6%.
(Reporting by Swati Bhat; Editing by Christina Fincher)
By Swati Bhat
MUMBAI, March 21 (Reuters) - India's economy is
gathering steady pace and is unlikely to face major
repercussions from the recent global financial turmoil, the
Reserve Bank of India said in its bulletin released on Tuesday.
"Unlike the global economy, India would not slow down – it
would maintain the pace of expansion achieved in 2022-23," the
RBI said in its State of the Economy article in the bulletin.
"We remain optimistic about India," it added
The central bank's nowcast of real GDP growth for the fourth
quarter of the current 2022/23 year stands at 5.3%, it said.
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