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RBI holds GDP growth forecast for FY22 at 9.5%, says economic activity normalising

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GDPThe Reserve Bank of India (RBI) governor Shaktikanta Das today proclaimed the August bi-monthly monetary policy statement. As expected, the RBI has kept the repo rate constant at 4% for a seventh straight meeting. The Monetary Policy Committee pursues to maintain its 'Accomodative’ stance. The reverse repo rate stands at 3.35%.

The statement follows the three-day review meeting of the six-member Monetary Policy Committee (MPC) which had started on Wednesday. Majority of economists had anticipated RBI’s MPC to keep the key lending rate unchanged.

The Reserve Bank of India (RBI) on Friday (August 6) kept its appraisal unchanged for economic growth at 9.5% for the current fiscal (FY2021-22). The central bank has observed that economic activity has began normalising; private consumption is enhancing while investment and external demand as indicated by high-frequency data are on the path of regaining traction. 

Worth mentioning here is that, in the previous monetary policy review on June 4, the central bank had cut its estimates for GDP growth for the current fiscal to 9.5% from 10.5% prior.

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