Reserve Bank of India has retained the economic growth for 2021-22 fiscal at 10.5 per cent in 2021-22 fiscal’s first monetary policy. Further , RBI has also kept repo rate unchanged at 4%, maintains accommodative stance; Reverse repo rate stands at 3.35%
The projection for CPI inflation has been revised to 5% in Q4 of 2021, 5.2%, in Q1 of 2021-22, 5.2% also in Q2 of 2021-22, 4.4% in Q3, and 5.1% in Q4 with risks broadly balanced, said RBI Governor Shaktikanta Das.
On March 31, 2021, the government retained the inflation target at 4% with the lower and upper tolerance levels of 2% and 6%, respectively, for the next five years that is from April 2021 to March 2026, Das said.
He said that the recent surge in COVID-19 cases has added uncertainty to the domestic growth outlook amid tightening of restrictions by some state governments.
“Central Bank to ensure ample liquidity in system so that productive sector gets adequate credit,” the RBI Governor assured.