RBI keeps lending rates unchanged, real GDP projection remains at 9.5%

Mumbai: The Reserve Bank of India on Friday kept the key lending rates unchanged at 4 per cent for 8th time in a row.

The reverse repo rate remained unchanged at 3.35 per cent.

The central bank is continuing its accommodative stance  to revive, sustain growth on durable basis, RBI Governor Shaktikanta Das said.

RBI has retained the projected real GDP growth at 9.5 per cent, he added.

Inflation

The RBI Governor also added that the inflation trajectory was turning more favourable than anticipated and that economic activity slowly picking up.

However, core inflation remains sticky.

RBI projects retail inflation for fiscal ending March 2022 at 5.3 per cent. Food inflation is expected to remain muted in coming month on back of record production of foodgrains

Capacity utilisation in manufacturing sector recovered in Q2 and further improvements are expected in ensuing quarters.

Ebbing of virus infection along with vaccination is supporting private consumption, the Governor said.