Big upset for RBI! Second Covid-19 wave to disrupt GDP, inflation projection
The RBI had said two months ago that urban demand and demand for contact-intensive services are expected to strengthen with the substantial fall in COVID-19 cases but things have changed since then. Here s what the central bank will have to factor in while announcing GDP and inflation projections
Anand Adhikari | April 6, 2021 | Updated 19:08 IST
There is now a downward bias to RBI s GDP projections for the current fiscal year
The six-member monetary policy committee (MPC) is expected to keep the repo rate unchanged at 4 per cent tomorrow while continuing with the accommodative stance to support economic recovery as well as government s borrowing plan. But the Reserve Bank of India (RBI) may have to factor the second Covid wave in its projections for growth and inflation.