RBI keeps key Repo rate unchanged at 4%; predicts 2020-21 real GDP growth to be negative

Reserve Bank of India (RBI) Goverr Shaktikanta Das on Thursday anunced that Monetary Policy Committee (MPC) of RBI has decided to keep repo rate unchanged at 4 percent. Das also said for year 2020-21 as a whole, real GDP growth is also estimated to be negative.

" accommodative stance of monetary policy will continue as long as necessary to revive growth and mitigate impact of pandemic while ensuring that inflation remains within target going forward. marginal standing facility rate and bank rate remains unchanged at 4.25 percent and reverse repo rate also stands unchanged changed at 3.35 percent", RBI Goverr said while dressing press.

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He also informed that RBI is perhaps only central bank in world that has set up a special quarantine facility for continuity of critical operations.

Real GDP growth will remain in negative zone for w

"Taking into consideration all factors, GDP growth in first half of year is estimated to remain in contraction zone. For year 2020-21 as a whole, real GDP growth is also estimated to be negative", Das said.

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Inflation to elevate during second quarter

RBI goverr furr said inflation is expected to be at elevated levels during second quarter, however, may ease in second half of current fiscal year. He said that supply chain disruptions persist, resulting in inflation pressures across segments. He also said that global ecomic activity has remained fragile and surge in COVID-19 cases has subdued early signs of revival. Pinning hope on agriculture sector, he said, Kharif crop harvest is expected to boost rural demand. Ecomic activity h started to recover, but a surge in coronavirus infections has forced imposition of lockdowns, he ded.

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