The GDP growth in 2020-21 is expected to remain in the negative category with some pick up in second half, said Reserve Bank of India (RBI) Governor Shaktikanta Das during the press conference today.
The RBI on Friday cut repo rate by 40 basis points to 4% from 4.40% and reverse repo by as much to 3.35% from 3.75%. The bank rate stands reduced to 4.25%.
The decision was reached after a 5:1 vote at the MPC meet. “The MPC is of the view headline inflation will remain firm in first half of 2020 but will ease in second half," says RBI governor.
Combination of fiscal, monetary and administrative actions will create conditions for revival of economy in the second half of FY21, Das added. “By Q3 and Q4 of financial year it is expected that