RBI upgrades GDP forecast, expects economy to shrink 7.5% this fiscal
The economy is recuperating faster than anticipated, the RBI chief said
The Reserve Bank expects GDP to contract 7.5% this fiscal, said central bank chief Shaktikanta Das while announcing monetary policy committee decision to keep interest rate unchanged. This is an upgrade from the central bank's earlier forecast of 9.5% contraction in its October review. The economy is recuperating faster than anticipated, the RBI chief said, adding that the recovery in rural demand is expected to strengthen further while recovery is urban demand is gaining momentum.