RBI holds rates

The Reserve Bank of India, which has reduced the benchmark repo rate by a total of 115 basis points since February, kept rates on hold earlier this month amid rising inflation.It must be noted that the RBI’s annual year is different from the regular financial year. For Reserve Bank, the annual report of 2019-20 pertains to the period between July 1, 2019 to June 30, 2020.This becomes relevant this year as the RBI included the first quarter (April, May June) of the current financial year in its annual report. And, the June quarter saw the maximum disruption of economic activity due to the Covid-19.The RBI, however, didn’t spell a clear number regarding the GDP growth or contraction but it mentioned that it will take quite some time to mend and regain the pre-Covid-19 momentum.