The Reserve Bank of India (RBI) has retained India's FY22 GDP growth at 10.5 percent. The MPC had projected this estimate during the previous policy announcement.

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Announcing the first bi-monthly monetary policy for FY22, RBI Governor Shaktikanta Das said that the central bank sees India's real GDP growth at 26.5 percent in Q1FY22, 8.3 percent in Q2FY22, 5.4 percent in Q3FY22, and 6.2 percent in Q4FY22.

"Global growth is gradually recovering from slowdown but remains uncertain. Vaccine distribution & its efficacy is key to global economic recovery," Governor Das said.

He noted that the rural demand remained buoyant and record agriculture production for 2020-21 bode well for its resilience. Urban demand has been gaining strength on the back of normalisation of economic activity and should get a fillip with the ongoing vaccination drive, he said.

The RBI also kept the repo rates unchanged and maintained the accommodative stance.

"The RBI's Monetary Policy Committee unanimously voted to keep the repo rates unchanged at 4 percent. The “accommodative” policy stance will continue till prospects of sustained recovery are well secured," Das said.

The central bank revised downward the retail inflation forecast for the fourth quarter of fiscal 2021 at 5 percent against 5.2 percent projected earlier.​

RBI expects CPI inflation to be at 5.2 percent in Q1FY22, 5.2 percent in Q2 FY22, 4.4 percent in Q3 FY22, and 5.1 percent in Q4 FY22.

Catch Live Updates on RBI Policy here.

First Published:Apr 7, 2021 10:12 AM IST