Inflation To Rise, RBI Decides To Keep Repo Rate Unchanged

News World India | 0
| October 4 , 2017 , 15:03 IST

Amid the speculation of rising inflation, the Reserve Bank of India has decided to keep the repo rate unchanged and reverse repo rate remains at 5.75 percent and bank rate at 6.25 percent.

News Agency ANI reported the RBI as saying, "Inflation is expected to rise from its current level& range b/w 4.2-4.6 percent in 2nd half of 2017, including house rent allowance by Centre."

Addressing the media, RBI governor Urjit Patel said, "The projection of real Gross Value Added (GVA) growth for 2017-18 has been revised down to 6.7 percent from August 2017 projection of 7.3 percent."

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"We express concern on weakening of the manufacturing sector in the first half of the year," he said.

On the other hand, the governor also suggested that the new tax slab GST's teething problems can be resolved soon.

The Central bank has also revised the country's growth projection from 7.3 percent to 6.7 percent. This change is speculated to be the impact of demonetisation and government's new tax slab Goods and Services Tax (GST) on the economy.

Earlier, the Industrial bodies had demanded a rate cut by from the Reserve bank of India, which the State Bank of India (SBI) speculated may not happen.