Reserve Bank Governor expects positive growth in second half

New Delhi: Reserve Bank of India (RBI) today said it expects the economy to record positive growth in the second half of the current financial year.

The bank’s monetary policy committee (MPC) today decided to keep the repo rate unchanged at 4 percent and maintained an accommodative policy stance.

Stating that the second half is expected to show some positive growth, RBI Governor Shaktikanta Das added that during the financial year as whole the economy was likely to contract by 7.5 per cent, which is an improvement over its previous projection of 9.5 per cent contraction.

RBI is prepared to take further measures to ease liquidity, Das has said.

‘We will continue to respond to global spillovers in order to secure domestic stability with our liquidity management operations. The various instruments at our command will be used at the appropriate time, calibrating them to ensure that ample liquidity is available to the system,’ the Governor said.
He added that the central bank will continue to use instruments such as OMO purchases, operation twists and reverse repos.

Agency