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RBI BATS FOR GROWTH OVER INFLATION

Updated on:10th Oct, 2020
The Reserve Bank of India on Friday kept policy rates unchanged as inflation remained stubbornly high, but unleashed an array of other tools to reduce borrowing costs in a bid to revive growth in Asia’s third-largest economy. Citing inflation as a transient worry, the central bank retained its accommodative policy stance with reviving growth as the primary objective. While the RBI’s rate action was on expected lines, governor Shaktikanta Das’s commentary that the economy is poised for a mild recovery in the fiscal fourth quarter, in a year when the gross domestic product (GDP) is set to post its biggest contraction since Independence, offered hope amid a parade of grim news.
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