RBI Projects GDP growth at 10.5% for FY 2021-22

The Reserve Bank of India (RBI) today said that the monetary policy review has decided to continue with an accommodative stance of monetary policy to maintain status quo on key policy rates.

This will continue as long as necessary at least through the current financial year and into next year to revive growth and mitigate the impact of COVID-19. The repo rate is kept unchanged at 4 per cent and the reverse repo rate at 3.35 per cent.

While announcing the policy review the RBI governor Shaktikant Das said that the GDP growth is projected at 10.5 per cent in the Financial Year 2021-22. He said projection of CPI inflation has been revised to 5.2 per cent for the fourth quarter of the current financial year. He added that the year 2020 tested the capabilities and endurance, 2021 is setting the stage for a new economic era in the course of our history.

Shaktikanta Das said that the normalisation is pick up pace in India as fears of a second wave of the coronavirus abate. He pointed out that consumer confidence is reviving and business expectations of manufacturing, services and infrastructure remain upbeat.

The movement of goods and people and domestic trading activities are growing at a robust pace.