Inflation in India Rating FY23 reached a 9-year high of 6.9%; The RBI expects

The average headline inflation in FY23 is expected to reach a nine-year high of 6.9 per cent, PTI reports on Wednesday, citing India Ratings and Research. The domestic rating agency has said that the Reserve Bank of India (RBI) may consider further rate hikes in the financial year.

According to India Ratings and Research, the RBI will raise rates by another 75 basis points and even 125 basis points (1.25 percentage points) if events and data changes are too unfavorable, PTI said.

The first rate hike by the RBI could lead to an order of 0.50 per cent in the June 2022 policy and another 0.25 per cent in the October 2022 policy, the agency said, adding that the cash reserve ratio could be further increased by 0.50 per cent. It will stand at 5 percent by the end of the financial year.

At an off-schedule meeting on May 4, the RBI raised the repo rate, lending it to the system by 0.40 percentage points, and the CRR or percentage of deposits required banks to park with the central bank by 0.50 percentage points, citing the threat. Inflation targets.

According to PTI, the April Consumer Price Index (CPI) fell to 7.8%, surpassing the RBI’s upper tolerance zone of 6% for the second consecutive month. All analysts agree that excess growth is on the way and that it will slow down GDP.

Retail inflation will rise until September 2022, then gradually decline, saying it is likely to exceed 6 percent for four consecutive quarters, starting in the fourth quarter of FY22 and ending in the third quarter of FY23.

It should be noted that the RBI is obligated to keep inflation below 6 percent through its agreement with the government, and the central bank will be forced to explain why it failed to do so for three consecutive quarters, PTI said.

According to the rating agency, retail inflation averaged 4.1 percent between FY16 and FY19, and crossed the tolerance level of 6% for the first time in December 2019, just on the verge of the COVID-19 epidemic. Despite declining demand during the epidemic, monthly retail inflation was above 6.0 percent as of November 2020 due to supply-side disruptions.

Meanwhile, the rating agency said that the rupee was under pressure due to outflow of funds due to tightening global rates and imports continued to rise as oil prices tightened. According to the report, the rupee will depreciate by about 5 per cent at FY23, averaging Rs 78.19 against the dollar, PTI said.

At the same time, this work has become even more important in the trillion-dollar digital economy, he added.

Safe and reliable internet for everyone. All these rules have been made in consultation with the industry, so it is the responsibility of everyone to abide by them. He further said that any cyber crime should be reported within 8 hours. All companies must keep their database secure for 180 days. Those who do not will have to follow it. These companies cannot deviate from the rules of the country, says Chandrasekhar.