RBI governor surprised with GDP growth rate of 5

RBI Governor Shaktikanta Das has said that the central bank’s monetary policy committee will continue to focus on growth as inflation is expected to stay within the medium-term target. The central bank chief has said that the fall in Gross Domestic Product growth to a six-year low of 5 percent in the April-June quarter was surprising.

He said that the numbers definitely look much worse because in the first quarter they had projected 5.8 percent and almost everybody had projected not below 5.5 percent.

He said that in February the monetary policy committee had started cutting the rates by 25 basis points as it was quite evident that the economy was slowing down.

Das has said that the current account and fiscal deficit could take a hit if oil prices continue to rise in the aftermath of drone attacks by Yemeni rebels on two Saudi Arabian oil fields.

Das also said that it was important to see if alternative sources of supply come up and how soon the installations take to resume operation.

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