The Reserve Bank OF India (RBI) on Friday projected retail inflation to be in 5-5.2 percent range during the first half of the next fiscal year, expecting further softening of vegetables prices in near term. Also, it has lowered the retail inflation forecast for the current January-March quarter of 2020-21 fiscal at 5.2 percent.
The Reserve Bank (RBI) has kept the key policy rate unchanged at 4 percent, with an accommodative stance, so as to ensure that inflation remains well within the target, Governor Shaktikanta Das said while announcing the last monetary policy of 2020-21.
"The Monetary Policy Committee (MPC) voted unanimously to leave the policy repo-rate unchanged at 4 percent. It also unanimously decided to continue with the accommodative stance of monetary policy as long as necessary...while ensuring that inflation remains within the target going forward," Das said.
The governor said the outlook on growth has improved significantly and inflation has returned within the tolerance band (of /-4 percent).
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