GDP growth projection for FY’21-22 is to be 10.5%: RBI Governor Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das has announced the bi-monthly monetary policy statement on Wednesday.

On Wednesday, April 7, Reserve Bank of India Governor Shaktikanta Das announced bi- monthly monetary policy statement via video conference. At 12:00 noon, the Governor will also interact with media persons through video conferencing.

The Reserve Bank of India has announced the monetary policy in which it has kept the repo rate unchanged at 4%. Monetary Policy Committee decided to retain its ‘Accommodative’ policy stance, said Governor Shaktikanta Das.

RBI Governor Das also added that, “The projection of real GDP growth for 2021-22 is retained at 10.5%”.

Shaktikanta Das talked about the domestic growth and added, “The recent surge in COVID19 cases adds uncertainty to the domestic growth outlook amid tightening of restrictions by some state governments.”

While presenting the policy, he also talked about Consumer Price Index (CPI) and announced about revision of inflation. He said, “The projection for CPI inflation has been revised to 5% in Q4 of 2021, 5.2%, in Q1 of 2021-22, 5.2% also in Q2 of 2021-22, 4.4% in Q3, and 5.1% in Q4 with risks broadly balanced.”

“On March 31, 2021, the government retained the inflation target at 4% with the lower and upper tolerance levels of 2% and 6%, respectively, for the next five years that is from April 2021 to March 2026”, said RBI Governor Shaktikanta Das, as quoted by ANI.

 

Shaktikanta Das also announced that Reserve Bank of India will support the market with adequate liquidity. Shaktikanta Das said, “Fresh lending of Rs 50,000 crores will be provided to all India financial institutions,” as quoted by ANI.

RBI announced its first bi-monthly monetary policy of the 2021-22 fiscal on April 7, 2021 after a three-day meeting of the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das. On February 5, after the last MPC meet, the central bank had kept the key interest rate (repo) unchanged citing inflationary concern.

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