India's economy to grow between 6.1% and 6.3% in Q2, says RBI bulletin

India's economy is expected to grow between 6.1% and 6.3% in the second quarter of the current financial year based on high frequency indicators and economic prediction models, the Reserve Bank of India (RBI) said in its monthly bulletin.

"If this is realised, India is on course for a growth rate of about 7% in 2022-23," the central bank said.

Data for the July-September quarter will be released at the end of this month.

"With headline inflation beginning to show signs of easing, the domestic macroeconomic outlook can best be characterised as resilient, but sensitive to formidable global headwinds," the RBI said.

"While urban demand appears to be robust, rural demand is muted, but more recently picking up traction." The central bank, however, highlighted that the global economy continues to be clouded with downside risks, with global financial conditions tightening and deteriorating market liquidity amplifying financial price movements.

"Markets are now pricing in moderate increases in policy rates and risk-on appetite has returned. In India, supply responses in the economy are gaining strength," the RBI said.