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.
If inflation trajectory evolved as was expected, more space would be opened up to address risks to growth, Das said, keeping the doors open for further cuts.
Follow our LIVE blog on the RBI press conference
This is the RBI governor’s third press conference since the coronavirus outbreak and the subsequent lockdown in March.
In his press meetings on March 27 and April 17, the RBI governor announced a series of measures to ease liquidity pressure in the banking system and cushion the economy from the COVID-19 downturn.
Check our complete coverage on RBI's May 22 announcements here
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