RBI holds rates, projects positive Q3 GDP growth, higher inflation
MUMBAI/NEW DELHI: The Reserve Bank of India (RBI) on Friday held interest rates steady, forecast a lower GDP contraction for the second half of the year, and sharply raised inflation projections, asserting that growth will return to the positive territory in the third and fourth quarters of the 2020-21 fiscal year.
The policy is expected to push growth as it sends a signal that interest rates have bottomed but funds would be available at current rates for the next few quarters.
“The growth impulses that have emerged augur well for the revitalisation of the Indian economy,” RBI governor Shaktikanta Das said.
Inflation likely to remain elevated
GDP (PPP) per capita is the general standard used to determine how rich a country is. The GDP per capita of USA is $60,0000 meanwhile the GDP per capita of India is only $2,000. This means that India is one of the poorest countries in the world. Even some war torn countries like Iraq is richer than India~
The economy recuperating faster than expected is bad news for the Congress
modi ka chaatu RBI governor....MA in Arts running Indias RBI while 10th fail running country
Indian economy is in the hands of a historian- most laughable decision by the Modi government; so his projections are not based on facts; economy of a country is a highly specialised job and so should be handled by a professional economist
Every time they change gdp% over and over. Govt should stop publishing gdp values. All numbers are fake.
When will this RBI and politicians realize that their actions are matter of life and death for poorest Indians.
Feku, aka Surrender Modi, and his RBI puppet are not trustworthy. All these figures seem to paint a rosy picture about the situation of our economy. However, the ground reality is that our GDP growth hits 74-year low since Independence. As per the latest IMF report, our GDP will shrink by 10.3% this year. That's why India is lagging behind Bangladesh in per capita GDP. Furthermore, our GDP is likely to shrink back to 2014 levels when Surrender Modi took power.
the more you hate Modi, the more we vote Modi
MINDLESSLY lowering the rates is NOT the solution to reviving the economy. Should look for reasons for diminishing credit growth and try to FIX them.
He is FOND of lowering the rates and govt LOVES taxng bank interest "INCOME" despite the fact that FD rates are lower than inflation rate and savings rates are FAR lower.
A bulk of the bank deposits are from senior citizens who are helpless and will continue to deposit with the banks no matter how SENSELESSLY low he makes the rates.
ok understand sir , you are just reading the script frm your masters
Interest rates are set higher or lower only based on inflationary expectations. If so, what is the logic for the RBI Governor to hold rates even when forecasting that inflation will be higher going forward ? This is distortion of the very precept of monetary policy and runs counter to ensuring price stability: which is the primary remit of RBI. It is also a great disservice to the saving class who are the fulcrum of Bank's mobilisation of resources - in a way, it is robbing Peter to pay Paul ... Read More
Well said, will the RBI or the Government listen.
India needs to get into the groove of growth sooner as the loss cannot be sustained further
we are not worried about inflation.
Modi should initiate a meaningful discussion with US,Japan & Europe for making India an alternative hub for production as an alternative to