Monetary policy review: RBI expects 'modest' recovery in Jan-March

As growth recovers, the MPC said inflation would moderate towards the range 4.5-5.4 per cent in the remainder of FY21.

Six months into FY21, the Reserve Bank of India (RBI) released its first estimate of economic growth in 2020-21 as its October monetary policy committee (MPC) meeting ended on Friday.

Accounting for the impact of the pandemic, real gross domestic product (GDP) in FY21 will fall 9.5 per cent, the MPC noted in its statement.

In that, the RBI gave quarterly estimates. After a 24 per cent fall in Q1, the central bank expects real GDP to fall 9.8 per cent in Q2, shed 5.6 per cent in Q3, and grow 0.5 per cent in Q4, with January-March marking the first quarter