The Indian central bank states that achieving alignment with the 4% inflation target is not guaranteed.

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The Indian central bank states that achieving alignment with the 4% inflation target is not guaranteed


The Reserve Bank of India (RBI) expressed uncertainty in achieving its goal of aligning inflation with the 4% target on a sustainable basis, noting potential risks to economic growth in its latest bulletin published on Wednesday.

According to the 'State of the Economy' article, the real-time impact of inflation is dampening discretionary consumer spending, thereby hindering the overall growth of manufacturing companies and their capital expenditures. The RBI emphasized the crucial link between inflation control and sustained economic growth, warning that failure to bring inflation back to the target could pose a significant risk to overall economic performance.

The latest data revealed a rise in annual retail inflation to 5.55% in November, primarily driven by elevated food prices. The RBI highlighted evidence from high-frequency indicators, indicating ongoing strength in demand conditions.

Looking globally, the RBI suggested a potential slowdown in the pace of global growth in 2024. It also noted varying degrees of disinflation across different regions, potentially setting the stage for interest rate reductions. In the Indian context, the RBI remains optimistic about the continued strengthening of economic activity, driven by easing input costs and enhanced corporate profitability.

Disclaimer: This article is pure understanding of Gyaanleikh team and we don't allow you to rely on the same.

RBI inflation target
Economic growth risks
Inflation impact on consumer spending
Manufacturing companies' growth constraints
Annual retail inflation data
High-frequency indicators
Sustainable economic growth
Global growth outlook
Disinflation trends
Interest rate reductions
State of the Economy bulletin
Indian central bank's concerns
Manufacturing capex challenges
Real-time inflation impact
Economic activity strengthening
Input costs and corporate profitability
Retail inflation factors
November inflation data
Economic growth link to inflation
Risk to overall economic performance.












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