MPC meet: RBI projects FY22 GDP growth at 9.5% 

The Reserve Bank of India (RBI) during its Monetary Policy Committee (MPC) announcements on Friday kept real GDP projection at 9.5 per cent. There has been no revision in the GDP forecast in the October policy. Q2 GDP has been revised from 7.3 per cent to 7.9 per cent, Q3 from 6.3 per cent to 6.8 per cent, and Q4 has been retained at 6.1 per cent.
 
“Almost all components of GDP grew year-on-year in Q1 despite the destructive impact of the second wave of Covid-19,” said Governor Shaktikanta Das, adding that this shows the resilience of the Indian economy. 
 
RBI expects ebbing of infections and improving consumer confidence to support private consumption. Pent-up demand and festival season should give further fillip to urban demand in Q2, stated the Governor.
 
Shaktikanta Das also said during the MPC meet announcements that the RBI projects GDP growth in Q1 FY23 to be at 17.2 per cent.
 
According to the Governor, recovery of the Indian economy is gaining traction and is in much better shape than the last MPC meeting. Growth impulses have strengthened and inflation trajectory is more favourable than anticipated. 
 
The apex bank also kept repo rate and reverse repo rate unchanged, while maintaining an accommodative stance. “Monetary policy stance remains accommodative as long as necessary to revive and sustain growth and mitigate the impact of the Covid-19 pandemic, while ensuring inflation remains within target,” Das said.