WEB DESK
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) estimated that the GDP growth rate for Financial Year 2022-23 would be at 7.2 per cent. Earlier it was projected at 7.8 percent.
The projection of GDP growth for 2022-23 is seen at 16.2% in Q1 (Apr-Jun 2022), 6.2% in Q2 (Jul-Sept 2022), 4.1% in Q3 (Oct-Dec 2022), and 4% in Q4 (Jan-Mar 2023), assuming oil at $100 per barrel.
The MPC meeting, one of the most crucial policies of recent times, happened at a time when the global picture is highly occupied with the Russia-Ukraine geopolitical tensions, high fuel prices, crude oil price hikes in the global markets, commodity prices going through the roof, and rising inflation.
The ongoing war between Russia and Ukraine is posing a huge threat to global recovery. Geopolitical tensions in Russia and Ukraine have disrupted supply chains the world over. Due to high commodity and input prices, rising crude oil prices, rising inflation, and chip shortages, the overall growth rate has slowed. In addition, growth in the United States has also slowed. The increase in input prices has slowed spending and impacted consumer confidence.
MPC meets six times in a fiscal year
The six-member Monetary Policy Committee headed by the Reserve Bank of India Governor meets once every two months to review monetary policy. During the financial year, the Reserve Bank’s Monetary Policy Committee (MPC) meets six times. The rate-setting panel led by the Governor of the Reserve Bank of India (RBI) met for the first time this fiscal year from April 6 to 8.
After deliberating on the current domestic and economic developments, the MPC announces its bi-monthly monetary policy. The next MPC, according to the RBI’s calendar, will take place on June 6-8.