The Reserve Bank's April Bulletin stated on Tuesday that extreme weather conditions and ongoing geopolitical tensions might both be risks to inflation. They could also make crude oil prices unpredictable.

After averaging 5.1% in the two months prior, the retail rate based on the Consumer Price Index (CPI) decreased to 4.9% in March.

Since February 2023, the Reserve Bank, which primarily considers CPI when determining its bi-monthly monetary policy, has maintained the key interest rate at 6.5%, citing inflationary worries.

The Bulletin's "State of the Economy" piece went on to say that the momentum for global growth continued in the first quarter of 2024 and that things were looking well for international commerce.

In many economies, mortgage rates and Treasury yields are rising as hopes of interest rate reduction are dwindling.

"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," concluded the piece.

The Reserve Bank of India, however, stated that the opinions stated in the Bulletin article are those of the writers and do not necessarily reflect the opinions of the RBI.

Data from the Reserve Bank of India (RBI)'s monthly bulletin indicates that the bank purchased $8.56 billion in foreign exchange on a net basis in February. In February, the RBI did not sell any dollars on the open market. The central bank purchased $1.95 billion in net purchases on the spot market in January.

In February, the Indian rupee gained 0.2% value in relation to the US dollar. The trading range for the unit was 82.8225 to 83.1150. According to the statistics, the RBI's net outstanding forward purchase at the end of February was $9.69 billion, down from $9.97 billion at the end of the previous month.

To reduce currency rate volatility, the central bank makes interventions in the spot and futures markets. Tuesday saw the local currency close at 83.3425, following last week's record low of 83.5750.