MUMBAI: A report published by the RBI said that recent data indicates inflation is now within its tolerance band. The second milestone, of bringing it within 4%, would be achieved by 2024, the report said.
The ‘State of the Economy’ report published in RBI’s monthly bulletin is optimistic on the outlook for the economy. The report says that fiscal consolidation is under way and will nurture the recovery and the current account deficit will narrow through the rest of 2022 &2023 and that early bird financial results of manufac-turing companies are robust. Overall, it said the macroeconomic stability is getting further entrenched.
“Recent data indicate first milestone of monetary policy being passed — bringing inflation into tolerance band. The objective during 2023 is to tether inflation the-rein so that it aligns with the target by 2024 — the second milestone,” the report said. RBI’s comments come in wake of retail inflation easing to 5. 7% in December, second month within RBI’s tolerance band of 6%.
The ‘State of the Economy’ report published in RBI’s monthly bulletin is optimistic on the outlook for the economy. The report says that fiscal consolidation is under way and will nurture the recovery and the current account deficit will narrow through the rest of 2022 &2023 and that early bird financial results of manufac-turing companies are robust. Overall, it said the macroeconomic stability is getting further entrenched.
“Recent data indicate first milestone of monetary policy being passed — bringing inflation into tolerance band. The objective during 2023 is to tether inflation the-rein so that it aligns with the target by 2024 — the second milestone,” the report said. RBI’s comments come in wake of retail inflation easing to 5. 7% in December, second month within RBI’s tolerance band of 6%.
