The Reserve Bank of India estimates GDP growth to be 10.5 per cent in 2021-22, said RBI Governor Shaktikanta Das during the MPC meet announcements on Friday. This is the first monetary policy announcement after the presentation of the Union Budget on February 1.
Governor Das said that the need of the hour is to continue supporting growth. "While the year 2020 tested our capabilities and endurance, 2021 is setting the stage for a new economic era in the course of our history," he said.
The RBI Governor said that 2021 has begun on a strong note and that it has set the stage for a new economic era.
RBI's estimate is in line with the pre-Budget Economic Survey that predicted a 'V-shaped' recovery that said that the Indian economy will rebound with 11 per cent growth in the next financial year.
The RBI also kept repo rate unchanged at 4 per cent. Repo rate has been kept unchanged for the fourth time in a row. Reverse repo rate too was kept unchanged at 3.35 per cent. The central bank will also maintain an accommodative monetary policy stance in order to support growth. "Central bank will maintain accommodative monetary policy stance to support growth, keep inflation at the targeted level," said RBI Governor Das.
RBI also projected CPI inflation at 5.2-5.0 per cent in first half of FY22. CPI inflation estimate was revised to 5.2 per cent for Q4 FY21.