RBI keeps policy rates unchanged, says the worst is over for the economy

RBI to run 'accommodative' stance as long as necessary and even entering the next year

The newly formed monetary policy committee (MPC) unanimously decided to keep policy rates unchanged in the bi-monthly policy meets for October, while the Reserve Bank of India (RBI) governor said the worst was possibly over for the economy and the focus must now “shift from containment to revival”.

The six-member MPC, which was formed earlier this week, met for three days to keep policy repo at 4 per cent, and said the real gross domestic product (GDP) growth rate in 2020-21 could decline by 9.5 per cent, with “risks tilted to the downside.”

However, the economy is witnessing an upturn, and if