The Reserve Bank had retained the FY22 projection for real GDP growth at 9.5 per cent on the back of the receding impact of Covid second wave as well as rising vaccinations.
Accordingly, RBI Governor Shaktikanta Das, pointed out that economy is recovering from set back from the Covid’s second wave.
He said that accelerated vaccination drive along with, buoyant exports and monetary as well as fiscal support has aided recovery.
According to him, private and government consumption, investment coupled with demand are on path of recovery.
He cited that the strong external demand as an opportunity for India. On Friday, RBI retained its key short-term lending rates during the third monetary policy review of FY22.
Besides, the growth-oriented accommodative stance was retained to give a push to economic activity despite high retail inflation levels.
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 per cent.
Likewise, 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.
It was widely expected that MPC would hold rates and the accommodative stance.