INSUBCONTINENT EXCLUSIVE:
While maintaining the key interest rates constant on Thursday, the Reserve Bank of India (RBI) said that the growth outlook for the
financial year 2020-21 will be influenced by several factors including private consumption, particularly in rural areas.
The RBI added that
private consumption is expected to recover on the back of improved rabi prospects
The recent rise in food prices has shifted the terms of trade in favour of agriculture, which will support rural incomes.
Secondly, the
central bank further added that the easing of global trade uncertainties should encourage exports and spur investment activity
transmission in terms of a reduction in lending rates and financial flows to the commercial sector has progressed and could spur both
consumption and investment demand in the country.
The rationalisation of personal income tax rates in the Union Budget 2020-21 should
support domestic demand along with measures to boost rural and infrastructure spending, it added.
Considering the aforementioned factors,
RBI projected GDP growth for 2020-21 at 6 per cent
Real GDP growth for 2019-20 was projected at 5 per cent in the December 2019 policy.
After three-day deliberations, the Monetary Policy
Committee (MPC), headed by RBI Governor Shaktikanta Das, observed that the economy continues to be weak and the output gap remains
Inflation pressure could ease in FY21
cent, maintaining its accommodative policy stance as long as it was necessary to revive growth.
