The Reserve Bank of India’s inflation projection has belied hopes for a reduction in the interest rates in the current financial year (2023-24) as retail inflation is expected to remain elevated due to high vegetable and foodgrain prices, economists and analysts said.
Inflation which is expected to remain above the five per cent till the first quarter of 2024-25 is likely to hit the 6.2 per cent level in the ongoing quarter (July-September), according to the RBI projection. The benchmark Sensex fell by 308 points to 65,688.18 amid worries about a delay in the rate cut and 10 per cent increment cash reserve ratio for banks.
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