New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das announced RBI monetary policy. Shaktikanta Das said that the Reserve Bank of India (RBI) has maintained a repo rate of 4% and reverse repo rate of 3.35% while maintaining its 'orderly' position.
The RBI's policy decision was in line with projections, as economists were expecting the central bank to maintain the status quo at key policy rates.
"Inflation is better than anticipated and there are signs of a faster recovery in the economy. With this, growth is showing rapid improvement and customer confidence is also increasing. Poultry demand has decreased due to bird flu. GDP growth in the financial year is estimated at 10.5," the RBI governor said.
"Consumer confidence is reviving and business expectations of manufacturing, services and infrastructure remain intact. The movement of goods and people and domestic business activities are increasing at a rapid pace. By the year 2020, our capabilities and endurance were tested. 2021 is setting the stage for a new economic era in the course of our history," he added.
The RBI expects the GDP growth rate to be 10.5% for 2021-22. The governor said inflation has returned to the tolerance band of 4%, while the government's investment-oriented stimulus under self-sufficient India has begun to show results. He further said that the health and infra sectors have been encouraged in the budget.
The recent budget has focused on supporting the growth rate and thus the government has announced fiscal deficit targets and higher than gross borrowings. The Finance Minister has expected an additional borrowing of Rs 12 lakh crore for the financial year and Rs 80000 crore in the next 2 months.