GDP growth to remain negative in FY 20-21, says RBI Governor Das

He stated that if inflation trajectory evolves as expected, more space will open up to address risks to growth

Moneycontrol News

May 22, 2020 / 12:17 IST

RBI Governor Shaktikanta Das (PTI)

The GDP growth in FY2020-21 is expected to remain in the negative category, with some pick up in the second half, Reserve Bank of India Governor Shaktikanta Das said on May 22.

"There will be a gradual revival of activity and demand by the second half of FY21. MPC (monetary policy committee ) believes it is essential to instil confidence at this point of time," Das told media.

The country’s top banker also announced a 40 basis points cut in repo rate to 4 percent.

Here's the full text of RBI Governor Shaktikanta Das' May 22 conference

"The monetary policy committee (MPC) unanimously voted for a 40 basis points policy repo rate cut," he said, speaking to the media first time after the government announced a Rs 20-lakh-crore economic stimulus package.

The committee voted 5:1 in favour of the cut, Das said, adding the decision was taken at an off-cycle meeting of the MPC that was on for the past three days.

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