RBI maintain status quo, says growth will gradually strengthen by the end of FY17

RBI Governor Raghuram Rajan maintained status quo and kept the repo rate unchanged at 6.75% and CRR at 4%

While addressing mediapersons, Rajan said the momentum of growth was slow over mid term and was expected to gradually gain pace by the end of FY17.

RBI kept the GVA forecast at 7.4% with downward bias and said that January target of CPI inflation ‘should be met’.

Rajan said the growth was slow owing to stalled projects, dampened exports and sluggish external demand.

Meanwhile, bank rate and MSF rate were also unchanged 7.75%.

The pay panel recommendations were not factored in.