Chennai: Reserve Bank of India’s decision of keeping the repo rates unchanged and maintaining an accommodative stance will provide the much needed support for the nascent recovery of the economy during 2021, said Samantak Das, chief economist and head of Research & REIS (India), JLL.
“The initial green shoots of recovery are already visible and is expected to gain strength in the coming quarters. This decision by the central bank is in sync with government’s recent Union Budget which emphasised on augmenting capital expenditure while keeping the fiscal targets at bay in the short term,” he said.
Das added: “The easing of retail inflation to 4.9 per cent in December 2020 and expected benign outlook has provided the elbow room to maintain the policy rates and support a sustained recovery of the economy. RBI’s expectation of GDP growth at 10.5% during FY 2021-22 indicates growth in jobs and incomes.”
