The monetary policy committee (MPC) of the Reserve Bank of India (RBI) kept policy rates unchanged, and the governor assured that the worst was possibly over for the economy and it can now hope for a steady recovery towards pre-pandemic growth rates.
The newly-appointed six-member MPC voted unanimously to keep the policy repo rate at 4 percent, and said the real gross domestic product (GDP) growth rate in 2020-21 could be a negative 9.5 percent, with “risks tilted to the downside.”
The stance of the policy would remain “accommodative,” for “as long as necessary – at least during the current financial year and into the next year – to revive growth on a durable basis and mitigate the impact of Covid-19 while ensuring that inflation remains within the target going forward,” RBI governor Shaktikanta Das in his streamed monetary policy address today(9th Oct.2020) morning.
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