India’s central bank increased its benchmark interest rate on Friday by 50 basis points to 5. 90%, the fourth hike this year, and noted that sluggish development, rising food and energy costs, the debt crisis, and currency devaluation were all issues facing developing nations.
Shaktikanta Das, governor of the Reserve Bank of India, predicted that the inflation rate will hit 6.
7% in the current fiscal year, which runs through next March. The Bank’s Monitoring Committee meeting was followed by a statement in which it was noted that June marked the sixth consecutive month in which inflation was higher than the central bank’s tolerance limit of 6%.
He declared that the central bank would continue to be committed to ending its accommodating monetary policy.
The bank’s monetary committee revised its real economic growth projection downward from 7.2% projected in August to 7% for the current fiscal year.
It is anticipated that the economy would increase by 6.7% in the first quarter of the upcoming fiscal year.
According to Das, the globe is experiencing a series of crises, but India has managed to withstand the effects of the coronavirus pandemic and the situation in Ukraine.
To combat inflation, India increased its interest rate to 5.90%.
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