RBI retains GDP growth at 7.4% in FY19

The Reserve Bank of India (RBI) Governor Urjit Patel on Wednesday said that Monetary Policy committee (MPC) has projected the GDP growth at 7.4% for this fiscal year as in the June statement.

"The MPC is projecting 7.5-7.6% in the first half of 2018-19 and 7.3-7.4% with risks evenly balanced. In the assessment of the committee uncertainty around inflation needs to be monitored in the coming months," said Urjit Patel while commenting on the global growth which has sustained pace but became uneven since the June policy.

The governor said that the increased FDI flows in recent months have continued buoyant domestic capital market conditions well for investment activity.

Adding to this he said that the MPC expects a gradual recovery of south-west monsoon but near sown area of kharif crops.

Earlier, the Reserve Bank of India (RBI) hiked the repo rate by 25 basis points to 6.50 per cent while maintaining neutral stance on the stability in the market.

The six member Monetary Policy Committee (MPC) said that its decision is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent.

The MPC added that the volatility in global financial markets continues to impart uncertainty to the inflation outlook.