New Delhi, September 30 (BNA) India’s central bank on Friday raised its key interest rate by 50 basis points to 5.90% in its fourth increase this year and said developing economies are facing challenges of slowing growth and rising food and energy prices. Debt distress and currency depreciation.
Reserve Bank of India Governor Shaktikanta Das has forecast inflation of 6.7% in the current fiscal year which runs till next March. In a statement after the bank’s monitoring committee meeting, he said that June is the sixth consecutive month in which inflation has exceeded the central bank’s 6% tolerance level.
He said the central bank will remain focused on withdrawing accommodative monetary policy, according to the Associated Press.
The bank’s monetary committee lowered its real economic growth forecast to 7% for the current fiscal year, from the 7.2% forecast in August.
The economic growth rate for the first quarter of the next fiscal year is expected to be around 6.7%.
Das said the world is facing one crisis after another, but India has weathered the shocks of the coronavirus pandemic and the conflict in Ukraine.
Das also said the Indian rupee has fallen by 4% since April against 14% in the value of the US dollar. The Indian rupee fell to an all-time low of 81.58 rupees for one US dollar.
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