INSUBCONTINENT EXCLUSIVE:
Reserve Bank of India Governor Shaktikanta Das (Photo: PTI)2 min read Last Updated : Jul 18 2024 | 5:46 PM IST
The second quarter of
2024-25 has begun with signs of quickening momentum in the economy and the revival of rural spending has turned out to be a bright spot in
appears to be strengthening across advanced economies (AEs) and emerging market economies (EMEs) and global trade in goods and services is
of interest has moved higher in the post-pandemic era, driven by the growth of potential output."The estimate of the natural rate for Q4
2023-24 is at 1.4-1.9 per cent as compared with our earlier estimate of 0.8-1.0 per cent for Q3 2021-22," the RBI said.
The natural rate
of interest is an equilibrium rate where growth is close to potential, alongside stable inflation.
It further said monetary policy
divergence is setting the tone for global economic developments.
"In India, the second quarter of 2024-25 has begun with signs of
quickening momentum in the economy," said the article.
The improvement in the outlook for agriculture and the revival of rural spending
have turned out to be the bright spots in the evolution of demand conditions, it added.
The article also noted that consumer price
inflation ticked up in June 2024 after three consecutive months of moderation as a broad flare-up in vegetable prices halted the overall
disinflation that had been underway.
The central bank, however, said the views expressed in the Bulletin article are of the authors and do
not represent the views of the Reserve Bank of India.First Published: Jul 18 2024 | 5:19 PMIST
