MUMBAI: Extreme weather conditions could pose a risk to inflation, while prolonged geopolitical tensions could also keep crude oil prices volatile, the Reserve Bank of India's April bulletin said on Tuesday.
Retail sales, based on the Consumer Price Index (CPI), declined to 4.9 percent in March after averaging 5.1 percent in the previous two months.
The Reserve Bank, which mainly takes into account the CPI while arriving at its bi-monthly monetary policy, has kept the key interest rate unchanged at 6.5 per cent from February 2023, citing concerns on the inflation front.
An article on the 'State of the Economy' published in the Bulletin further said that global growth momentum has been sustained in the first quarter of 2024, and the outlook for world trade is turning positive.
Treasury yields and mortgage rates are rising in major economies and expectations of interest rate cuts are diminishing.
"In India, conditions are being created for an extension of the upward trend in real GDP growth, supported by strong investment demand and upbeat business and consumer sentiments," the article said.
However, RBI said the views expressed in the bulletin article are those of the authors and do not represent the views of the Reserve Bank of India.
Retail sales, based on the Consumer Price Index (CPI), declined to 4.9 percent in March after averaging 5.1 percent in the previous two months.
The Reserve Bank, which mainly takes into account the CPI while arriving at its bi-monthly monetary policy, has kept the key interest rate unchanged at 6.5 per cent from February 2023, citing concerns on the inflation front.
An article on the 'State of the Economy' published in the Bulletin further said that global growth momentum has been sustained in the first quarter of 2024, and the outlook for world trade is turning positive.
Treasury yields and mortgage rates are rising in major economies and expectations of interest rate cuts are diminishing.
"In India, conditions are being created for an extension of the upward trend in real GDP growth, supported by strong investment demand and upbeat business and consumer sentiments," the article said.
However, RBI said the views expressed in the bulletin article are those of the authors and do not represent the views of the Reserve Bank of India.
