Mumbai: RBI Governor Shaktikanta Das said the projection for real GDP growth is retained at 9.5 per cent in 2021-22, consisting of 6.6 per cent in Q3, and 6 per cent in Q4. Real GDP growth is projected at 17.2 per cent for Q1 of 2022-23 and 7.8 per cent for Q2 of 2022-23. 

Following Monetary Policy Committee (MPC) meeting in Mumbai, RBI Governor said, "Recent reductions in excise duty and state VAT on petrol and diesel should support consumption demand by increasing purchasing power. Government consumption is also picking up from August, providing support to aggregate demand".  

The governor expressed concern over the persistence of CPI inflation excluding food and fuel since June 2020  because of input cost pressures that could rapidly be transmitted to retail inflation as demand strengthens.

"Price pressures may persist in the immediate term. Vegetable prices are expected to see a seasonal correction with winter arrivals in view of bright prospects for Rabi crops", said Shaktikanta Das

"CPI inflation is projected at 5.3 per cent in 2021-22. This consists of 5.1 per cent in Q3, and 5.7 per cent in Q4 with risk broadly balanced", he added.

Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate at 4 per cent and the stance remains accommodative. Marginal Standing Facility (MSF) rate and bank rate remain unchanged at 4.25 per cent. Reverse repo rate also remains unchanged at 3.35 per cent.