The Reserve Bank of India's April bulletin warned that extreme weather conditions could pose a risk to inflation, and prolonged geopolitical tensions could keep crude oil prices volatile.
Based on the Consumer Price Index (CPI), retail sales eased to 4.9 per cent in March after averaging 5.1 per cent in the preceding two months.
The RBI has kept the repo rate unchanged at 6.5 per cent since February 2023, citing inflation concerns.
An article on the 'State of the Economy' published in the Bulletin further stated that global growth momentum was sustained in the first quarter of 2024, and the outlook for world trade is positive.
Treasury yields and mortgage rates are ticking up in major economies as expectations of interest rate cuts are being pared.
"In India, conditions are shaping up for an extension of a trend upshift in real GDP growth, backed by strong investment demand and upbeat business and consumer sentiments," the article said.
The RBI, 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.
