MPC ups inflation projection for Q3 and Q4, keeps it at 6.7% for full FY23

Panel cuts economic growth forecast by 20 bps to 6.8% for the year; Q3 lowered by 20 bps and Q4 by 40 bps

After writing to the government over its failure to contain the retail price inflation up to six per cent for three consecutive quarters, the Monetary Policy Committee (MPC) on Wednesday retained its projections for the rate of price rise at 6.7 per cent for the current financial year. However, it raised it slightly by 10 basis points (bps) for the third and fourth quarters each.

The reason may be that the second quarter saw a bit less inflation rate at 7.04 per cent than 7.1 per cent expected by MPC in its September review.

MPC expected Q3 inflation at 6.6