The Monetary Policy Committee of the Reserve Bank of India Friday kept the repo rate unchanged at four percent.RBI Governor Shaktikanta Das said the committee unanimously voted to keep rates unchanged and decided to maintain its accommodative monetary policy stance to support growth amid the pandemic.
He also said the Indian economy was entering into a “decisive phase” in the fight against Covid-19, reported news agency PTI.
Addressing a press conference, Das said India’s GDP would contract by 9.5 percent in the current fiscal due to the disruptions caused by the coronavirus pandemic.However, he said the contraction in the economic growth of Q1 was behind us, and “silver linings are visible”.
Das also said the GDP growth may break out of contraction and enter a positive zone by the fourth quarter of this fiscal.
“Modest recovery in first half of the year could further strengthen in second half… economic activity to gain traction in the third quarter,” Das was quoted as saying by PTI.The six-member MPC met this week following the induction of three new independent members, Shashanka Bhide, Ashima Goyal, and Jayanth R Varma.
