RBI’s Key Policy Unchanged, GDP to grow at 9.5%

The Reserve Bank of India (RBI) kept the Repo rate unchanged at 4 % and decided to continue with its accommodative stance in the backdrop of concerns over the emergence of the new coronavirus variant Omicron. GDP projection by RBI is said to be 9.5%.

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Shakti Kant Das (in pic)

New Delhi: On 8th November, The Reserve Bank of India (RBI) kept the Repo rate unchanged at 4 % and decided to continue with its accommodative stance in the backdrop of concerns over the emergence of the new coronavirus variant Omicron. Whereas, the GDP projection by RBI is said to be 9.5%.
RBI Governor Shaktikanta Das has maintained the status quo since the start of the Pandemic. Till now, it is the ninth time in a row that the Monetary Policy Committee (MPC) is unchanged. RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to peak up demand by cutting the interest rate to a historic low as the nationwide lockdown ended.
On the matter of GDP, Das said that the projection for real GDP growth is maintained at 9.5 percent. In Q3FY22 GDP growth will be 6.6 percent down by 0.2%. Additionally, Q4FY22 GDP was cut to 6 percent from 6.1 percent earlier. The real GDP growth is projected at 17.2 percent for Q1FY23 and 7.3 for FY23.
Shaktikant also mentioned petrol and diesel prices and said that the recent cuts in taxes on petrol and diesel will support the purchasing power of the consumer. He added that the government consumption has also picked up from August, providing support to the demand uptick.

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