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    RBI Monetary Policy: MPC projects India to grow at 9.5% this fiscal

    RBI Monetary Policy: MPC projects India to grow at 9.5% this fiscal

    RBI Monetary Policy: MPC projects India to grow at 9.5% this fiscal
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    By CNBCTV18.com  IST (Updated)

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    The Reserve Bank of India has retained its projection that India will grow at 9.5 percent in FY22. It has revised its quarterly projections for the next year due to the uncertainty caused due to Omicron variant of the COVID-19 virus and with an eye on US Federal Reserve's liquidity tapering expectations.

    The Reserve Bank of India has retained its projection that India's real GDP (gross domestic product) will grow at 9.5 percent for this financial year (FY22).
    The RBI Governor, Shaktikanta Das, said that the slump after the second wave of COVID-19 seems to have been mitigated to a large extent and an improvement in consumption demand, especially after the festive season kicked in, helped in demand revival.
    The RBI has revised its quarterly projections for the next year due to the uncertainty caused due to the Omicron variant of the COVID-19 virus and with an eye on the US Federal Reserve's liquidity tapering expectations.
    GDP: RBI's quarterly projection
    Q3FY226.60%
    Q4FY226.40%
    Q1FY2317.20%
    Q2FY237.80%
    The third quarter (Q3FY22) growth projection was earlier 6.8 percent. The fourth quarter (Q4FY22) earlier projection was 6.1 percent.
    India's GDP grew at 8.4 percent in the July-September quarter of the fiscal year 2021-22 and the Chief Economic Advisor to the government, Krishnamurthy Subramanian, told CNBC-TV18 some days back that he believes the country should be able to achieve double-digit growth this year.
    The RBI Governor credited the rise in urban demand, seen in travel tourism, in helping revive growth.
    The Monetary Policy Committee of the RBI  decided to keep an accommodative stance keeping the repo rate unchanged at 4 percent.
    The central bank expects headline CPI inflation will peak in this quarter (Q4FY22). The RBI Governor has projected the CPI inflation for FY22 at 5.3 percent, in line with the previous projections.
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