Monsoon Crops: RBI Governor said on Kharif crop and monsoon, all is well

Reserve Bank of India Governor Shaktikanta Das said that RBI has reduced the retail inflation forecast for FY24 to 5.1% from 5.2% earlier.

There is good news for the farmers cultivating Kharif crops. This time even after the assumption of normal monsoon, they will not be affected by inflation. Reserve Bank of India Governor Shaktikanta Das has said that after a normal monsoon in the country , retail inflation may remain at 5.1% for the financial year 2023. According to him, this inflation is also good for Kharif crops. However, there is still uncertainty about the condition of El Nino in the country.

According to media reports, Shaktikanta Das said that this time the monsoon is expected to be normal. In such a situation, retail inflation for 2023-24 can remain up to 5.1%. He said that a decline in consumer price inflation was registered in the month of March-April this year. However, retail inflation is still above the target. He said that according to the new data and our estimates released for 2023-24, retail inflation may remain above the target even further. He said that according to our assessment, inflation will remain above 4% during 2023-24.

Domestic macroeconomic fundamentals are strengthening

Shaktikanta Das said that the domestic macroeconomic fundamentals are getting stronger. In such a situation, the current account is expected to reduce and remain largely manageable in 2023-24. He said that the rupee has been stable since January this year. India's foreign exchange reserves had reached $595.1 billion on June 2.

MPC decides to keep repo rate unchanged at 6.5%

Shaktikanta Das said that the RBI has reduced the retail inflation forecast for FY24 to 5.1% from 5.2% earlier. At the same time, the estimate of retail inflation for Q1FY24 has come down to 4.6% from 5.1%. Whereas for Q2FY24, this figure has come down from 5.4% to 5.2%. Similarly, the retail inflation forecast for Q3FY24 and Q4FY24 has been retained at 5.4% and 5.2% respectively. At the same time, the MPC decided to keep the repo rate unchanged at 6.5%. The Fixed Deposit Facility rate remains at 6.25%. The marginal standing facility rate and the Bank Rate are unchanged at 6.75%.