Key Points
Better growth prospects of the gulf cooperation council (GCC) countries are expected to keep remittances robust RBI governor Das said..
Inward remittances which is major source of strong positive flows in the current account- touched an all-time high of $ 107.5 billion during calendar year 2022...
The material narrowing of trade and current account deficits and range-bound INR must have offered the MPC better comfort for pursuing a more Fed-independent monetary policy Siddhartha Sanyal, chief economist and head of research, Bandhan Bank..
It was important for the RBI to leave the policy rate at a level, which can be kept unchanged for a long time, as against hiking rates very aggressively now and building up pressure for cutting the same only in few months. . The CAD is expected to remain moderate in Q4:2022-23 and in the year 2023-24 at a level that is both viable and eminently manageable, governor Das said in his monetary policy statement..
"With the sharp deceleration in commodity prices due to global slowdown and resilient remittances & services surplus, the current account is expected to record a marginal surplus in 4QFY23" said Sunil Sinha, principal economist at India Ratings..
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