The Reserve Bank of India (RBI) today projected real GDP growth at 10.5 percent for 2021-22.
To support rapid economic recovery amid an increase in Kovid-19 cases, the Reserve Bank maintained its key short-term lending rates, along with a growth-oriented adjustment stance during the first monetary policy review of FY22.
Accordingly, the Monetary Policy Committee (MPC) of the central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks at 4 percent. Similarly, the reverse repo rate was kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the ‘bank rate’ at 4.25 per cent.
Firms engaged in manufacturing, services and infrastructure provided by RBI in March 2021 were optimistic about demand and expansion in business activity in 2021-22. On the other hand, consumer confidence has recently been submerged in some states with an increase in COVID infections, which gives uncertainty to the outlook. Considering these factors, the projection of real GDP growth for 2021-22 has been retained at 10.5 per cent with 26.2 per cent in Q1, 8.3 per cent in Q2, 5.4 per cent in Q3 and 6.2 per cent in Q4, “The Reserve Bank of India has said.