India reported 115,736 new coronavirus infections on WednesdayThe Reserve Bank of India Governor Shaktikanta Das kept the GDP growth forecast for FY 2021-22 the same at 10.5 per cent, while explaining that international development stays uncertain in face of raging Covid19 cases.
Vaccine circulation and its effectiveness is key to global financial recovery, the RBI Governor stated and guaranteed that the central bank will continue with an accomodative financial policy to alleviate the impact of the pandemic.The pandemic continues to pose a hazard to growth.
The Index of Industrial Production (IIP) contracted by 1.6 per cent in January and the production PMI was up to a seven months low in March.
At the last policy fulfill in February, the reserve bank had actually said it expected the economy to expand 10.5 per cent in the year that started April 1.
The forecast of real GDP development for 2021-22 consisted of 26.2 per cent in the first quarter, 8.3 percent in the second quarter, 5.4 percent in the 3rd quarter and 6.2 per cent in the fourth quarter, the RBI said.Meanwhile, the RBI Governor kept the essential rates unchanged amid issues that increasing Covid-19 infections might hinder the nation's nascent financial recovery.
The central bank kept the repo rate constant at 4 per cent and reverse repo rate untouched at 3.35 per cent.The central bank also revised downward the retail inflation projection for the 4th quarter of fiscal 2021 at 5 per cent against 5.2 percent projected earlier.
RBI anticipates CPI inflation to be at 5.2 percent in the first quarter, 5.2 percent in the second quarter, 4.4 percent in the third quarter and 5.1 per cent in the 4th quarter.India reported 115,736 new coronavirus infections on Wednesday, after crossing the 1 lakh mark for the very first time on Monday to become just the 2nd country after United States to cross the grim figure.