Reserve Bank of India Fears that 9.5 Percent of GDP Could Fall in this Financial Year

Earlier, the Central Statistics Office (CSO) also feared that GDP would fall to 23.9 percent in the first quarter.

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New Delhi: IndiaLive Finance: Reserve Bank of India Governor Shaktikant Das has said that GDP could fall to 9.5 per cent in the current financial year. The Reserve Bank is estimating this after a three-day review meeting of the Monetary Policy Committee. However, Shaktikant Das hopes that the financial system will improve in the second half of the current financial year and reach a positive outlook between January and March.

Earlier, the Central Statistics Office (CSO) feared that GDP would fall by 23.9 percent in the first quarter.

The meeting of the Monetary Policy Committee started on Wednesday. Shaktikanta Das said the economic downturn in the April-June quarter was slowly receding. The light of hope is seen again. Inflation may also come down to the target in the fourth quarter of 2020-21.

Retail inflation has topped 6 percent this month. The RBI, in its monetary policy review, has focused on retail inflation. The Center has set a target for the RBI to keep inflation at 4 per cent on the basis of a 2 per cent hike.

However, the RBI has not changed the repo rate and reverse repo rate. Monetary policy has kept the repo rate at 4 percent and the reverse repo rate at 3.35 percent. No change in repo rate means no change in EMI or interest rate.

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