The Reserve Bank of India (RBI) on February 10 projected the real gross domestic product (GDP) for fiscal 2022-2023 at 7.8 percent, as it surprised the market by holding the key rates steady, continuing policy support for the economy amid the coronavirus pandemic.
''India is poised to grow at the fastest pace year-on-year among major economies, according to projections made by the International Monetary Fund (IMF)'', RBI Governor Shaktikanta Das said, as he shared the outcome of the first bi-monthly monetary policy committee (MPC) meeting of 2022.
The economy was likely to grow 17.2 percent in the first quarter, seven percent in the second, 4.3 percent in the third quarter and 4.5 percent in the fourth quarter) of FY23, Das said.
Catch all lives updates of RBI Monetary Policy here
The rate-setting panel kept the key interest rates unchanged for the tenth time in a row as it continued to stuck with an “accommodative stance”.
The repo rate, the rate at which banks borrow from the RBI, was kept steady at four percent. The reverse repo rate, the rate at which the central bank borrows short-term deposits from banks, was kept steady at 3.35 percent.
Also Read: RBI Monetary Policy: Despite improving inflation outlook, continued policy support warranted
The government estimated that adjusted for inflation, the real GDP would grow 9.2 percent in 2021-22, significantly higher than the World Bank’s projection of 8.3 percent.
Also read: RBI Monetary Policy: Key takeaways from the announcements
Presenting the Budget 2022, Finance Minister Nirmala Sitharaman had told Parliament that the country's nominal GDP would grow by 11.1 percent in 2022-2023.
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