Chennai: After a three-day policy meet, the Reserve Bank of India (RBI) announced its monetary policy today.
The apex bank kept the repo rate unchanged at 4 per cent and the stance accommodative, in the first policy after Budget 2021.
It projected India’s GDP growth rate at 10.5 percent for the fiscal year 2021-22. The RBI’s projection is lower than that of the Economic Survey that projected India to grow at a rate of 11 percent in the coming fiscal.
The Monetary Policy Committee (MPC) in its statement noted that the sharp correction in food prices has improved the food price outlook, but also made the point that some pressures remained and that core inflation was high.
“The global economic recovery slackened in Q4 (October-December) of 2020 relative to Q3 (July-September) as several countries battle second waves of Covid-19 infections, including more virulent strains. With massive vaccination drives underway, risks to the recovery may abate and economic activity is expected to gain momentum in the second half of 2021,” the MPC said in its statement.