RBI's monetary policy committee has decided to keep the repo rate unchanged at 4%. RBI said that the decisions to keep the repo rate unchanged was in consonance with the objective of achieving the medium-term target for CPI inflation of 4% within a band of (+/-) 2%.
RBI governor Shaktikanta Das said that the central bank expects CPI inflation to remain elevated in Jul-Sep.
Further, the central bank expects India's GDP growth in FY21 to be in the negative zone.
In the wake of concerns over growth, the central bank has decided to maintain the accommodative stance, which means a rate hike in near future is off the table and a rate cut is more likely, said Das.
