Reserve Bank of India (RBI) said in its monthly bulletin that high frequency indicators and economic prediction models predict 6.1%-6.23% growth in the second quarter of the current financial year. “In 2022-23, India will grow at about 7% if this is realized,” the central bank predicted. The July-September quarter’s data will be released at the end of this month, according to Reuters.
Inflation within the household sector is showing signs of easing, which indicates that despite formidable global headwinds, the macroeconomic outlook in the domestic economy is resilient, but vulnerable,” the RBI said. There are signs that urban demand has been robust, while rural demand has been muted, but has recently gained traction.
Despite this, the central bank has warned that the global economy is still at risk, as global financial conditions tighten and deteriorating market liquidity exacerbates financial price movements due to tighter financial conditions.e increases in policy rates and risk-taking appetite has returned to the economy. In India, supply responses to economic stress are gaining strength,” the RBI added.