Reserve Bank of India keeps repo rate unchanged at 4%, maintains accommodative stance; reverse repo rate remains unchanged at 3.35%.
“Monetary Policy stance remains accommodative as long as necessary to revive and sustain growth and mitigate the impact of COVID19 pandemic while ensuring inflation remains within the target,” RBI governor Shaktikanta Das said.
“The recovery of Indian economy is gaining traction; it’s in better shape than last MPC meeting. Growth impulses strengthening, inflation trajectory favourable than anticipated; hope to sail towards normal times, due to resilience of economic fundamentals of our economy,” the governor added.
On GDP, Das said that the projection for real GDP growth is retained at 9.5% for FY 2021-22. This consists of 7.9% in Q2, 6.8% in Q3 and 6.1% in Q4 of 2021-22. Real GDP growth for Q1 of FY 2022-23 is projected at 17.2%.