Real GDP growth in FY21 to remain negative: RBI Guv

Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday reiterated that the real GDP growth rate in FY 2020-21 is expected to be negative.

Addressing the media after the Monetary Policy Committee’s (MPC) bi-monthly meeting, he said that the economy will contract in the first half of the current fiscal due to the Covid-19 pandemic.

He was of the view that the world may face a second wave of the novel coronavirus as economic activities open up. “World is bracing for a second wave of pandemic as economies open up,” Das said.

The central bank maintained the key lending rates while maintaining its accomodative stance, thus opening up possibilities for more future rate cuts.

The MPC of the central bank maintained the — repo rate — or short-term lending rate for commercial banks, at 4 per cent.