RBI keeps interest rates untouched, projects inflation at 5.3 pc for FY 2022

RBI keeps interest rates untouched, projects inflation at 5.3 pc for FY 2022

The Reserve Bank of India (RBI) on Friday kept the repo rate unchanged for the eighth time straight and continued with an accommodative stance, said RBI Governor Shaktikanta Das.

The repo rate — the RBI’s lending rate — remains unchanged at 4 percent and the reverse repo rate — borrowing rate — at 3.35 percent. “The stance remains accommodative as long as necessary to revive and sustain growth on a durable basis, and continue to mitigate the impact of COVID-19 on the economy,” RBI Governor said.

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“The worst of the second wave behind us, and substantial pickup in Covid-19 vaccination, giving greater confidence to open up and normalize economic activity,” he added.

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Meanwhile, the Reserve Bank of India (RBI) has projected the Consumer Price Index (CPI) inflation at 5.3 percent for the financial year 2022.

The RBI Governor Shaktikanta Das, addressing a press conference here on Friday, informed that the CPI inflation for the first quarter of the financial year (FY) 2022-23 is projected at 5.2 percent.

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“The projection for real Gross Domestic Product (GDP) growth is retained at 9.5 percent for FY 2021-22. This consists of 7.9 percent in the second quarter, 6.8 percent in the third quarter, and 6.1 percent in the fourth quarter of 2021-22,” Das said.

He further informed that the real GDP growth for the first quarter of FY 2022-23 is projected at 17.2 percent.

-PTC News