said Suvodeep Rakshit, senior economist at Kotak Institutional Equities. However, oil prices remain a risk, with India importing about 80 percent of its crude requirement. After removing this statistical impact, the projected inflation range further falls to 4.4-4.7% for the first half and 4.4% for the second half.
CBDC is a digital currency issued by a central bank whose legal tender status depends on government regulation or law.
The MPC reiterated its commitment to achieving the medium-term target for headline inflation of 4 percent on a durable basis. This marks a reduction from its February forecast of 5.1 percent to 5.6 percent in the first half and 4.5 percent to 4.6 percent in the second half.
The central bank also expects the GDP (gross domestic product) growth to strengthen to 7.4 per cent in 2018-19, versus 6.6 per cent last fiscal.
The RBI warned, however, that even as global growth and trade have strengthened, rising trade protectionism and market volatility could derail the global recovery.
"On balance, we chose to remain watchful about the unfolding of these risks as well as the impact on inflation of the forthcoming revision in MSP, second round impact of house rent allowances by various state governments and fiscal slippages", added Mr Patel.
Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.
Hopefully, this would have some moderating influence on cost of borrowings from the primary bond markets, which have now emerged as the major source of finance besides the primary capital market.
The official statement comes from the RBI deputy governor B P Kanungo, who commented: "To ring fence the RBI regulated entities (banks) from the risk of dealing with entities associated with virtual currencies, they (banks) are required to stop having business relations with the entities dealing in virtual currencies forthwith".