Following are the highlights of RBI's monetary policy statement:
- Benchmark lending rate unchanged at 6.50 per cent
- RBI projects 6.5% economic growth for 2023-24, better than 6.4% projected in February
- Inflation to be 5.2% in 2023-24, against 5.3% estimated in February
- Fight against inflation far from over, inflation outlook dynamic amid sudden announcement of crude output cut by OPEC+
- War against inflation has to continue until RBI sees a durable decline in inflation closer to the target
- Expectation of a record Rabi harvest bodes well for easing of food price pressures, milk prices likely to remain firm going into the summer season due to tight demand-supply balance and fodder cost pressures
- Protracted geopolitical tensions and global financial market volatility pose downside risks to growth outlook
- Witnessing unprecedented uncertainties in geopolitics and economy
- Global economy confronted with serious financial stability challenges in wake of recent banking sector developments in advanced countries
- Regulators need to identify potential vulnerabilities and take proactive regulatory and supervisory measures
- Institutions should exercise due diligence in risk management, corporate governance practices; pay close attention to asset-liability mismatches, build up adequate capital buffers
- RBI keeping a close watch on the banking sector turmoil in some developed countries
- RBI to set up centralised portal for public to search unclaimed deposits in multiple banks
- Indian Rupee moved in an orderly manner in 2022 and continues to be so in 2023, RBI remains watchful on maintaining stability
- CAD to remain moderate in Q4:2022-23 and in the year 2023-24 at a level that is both viable, eminently manageable
- Next meeting of the monetary policy committee scheduled for June 6-8.