In his speech on monetary policy today, RBI Governor Shaktikanta Das stated that the estimated GDP growth for FY22 will remain steady at 9.5 percent. Inflation expectations for FY22 have been raised to 5.7 percent. There has also been “encouraging movement in high frequency indicators,” according to the governor. This indicates that the economy is on its way back. For the past two months, India’s retail inflation has been above the RBI’s tolerance band. Price pressures, on the other hand, should ease in the third quarter. “At this time, the current judgement is that inflationary pressures in Q1:2021-22 are mostly driven by adverse supply shocks that are projected to be temporary”.