Current Affairs

ADB’s Inflation Forecast for India

Current context: Asian Development Bank (ADB) has lowered the inflation forecast for India to 4.1% in FY 2020
ADB’s Inflation Forecast for India
  • The forecast has shown low figure due to gain in rupee and cut in the country’s GDP projection
  • ADB has supplemented Asian Development Outlook (ADO) 2019 which said that India will be the main driver to lower the inflation for the south Asian region
  • The inflation forecast for South Asia for 2019 was lowered from 4.7% to 4.5%, mainly due to lowered forecast for India
  • India’s GDP forecast has also been lowered by ADO in 2019-20
  • RBI has raised the retail inflation forecast marginally to 3-3.1% for the 1st half of fiscal in its last monetary policy review in June
  • But the retail inflation for the 2nd half of 2019-20 has been cut to 3.4-3.7% rather than RBI’s previous projection of 3.5-3.8%
  • RBI will review the monetary policy in August 2019

Question: 

Q.1 Out of the given options, which Indicator/Indicators are considered for Inflation forecast by ADB?
a. Currency’s Value of a country
b. country’s GDP
c. Oil prices
d. All of the above
ADB’s Inflation Forecast for India ADB’s Inflation Forecast for India Reviewed by Neha Verma on July 22, 2019 Rating: 5

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