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RBI keeps interest rates unchanged; cuts GDP growth forecast to 9.5 percent

Amid the growing uncertainty over the Covid-19 pandemic, the Reserve Bank of India (RBI) on Friday has kept the interest rates unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.

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Shaktikanta Das

Amid the growing uncertainty over the Covid-19 pandemic, the Reserve Bank of India (RBI) on Friday has kept the interest rates unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.

The central bank has kept the repo rate at 4 percent and the reverse repo rate unchanged at 3.35 percent. It has also projected real GDP growth of 9.5 percent for the financial year 2021-22, against the estimated rate of 10.5 percent, due to the impact of the second Covid wave. 

This is the sixth consecutive time rates have been unchanged. At the end of the three-day Monetary Policy Committee (MPC) meeting that started on Wednesday, RBI Governor Shaktikanta Das said the resilience of the agricultural sector, forecast of normal monsoon and the gathering global economic momentum will help the domestic economy as the second wave of the pandemic tapers off.

The MPC was of the view that at this juncture, policy support from all sides is required to regain the momentum of growth that was evident in H2:2020-21 and to nurture the recovery after it has taken root, the RBI governor said. The central bank will open a special liquidity window of ₹ 15,000 crore till March 30, 2022, with tenors of up to three years at the repo rate, the RBI Governor added.

Read Also: Amid Covid 3rd wave scare, AIIMS chief says Pfizer coming in India for kids will boost Covid vaccination for adults too

On inflation at 4.3 percent, RBI Governor Das said, it has brought with it some relief and policy elbow room. A normal south-west monsoon along with comfortable buffer stocks should help to keep cereal price pressures in check. On the other hand, the rising trajectory of international crude prices within a broad-based surge in international commodity prices and logistics costs is worsening cost conditions, he said.

India News

West Bengal Governor dissolves Assembly amid political transition 

Governor R N Ravi dissolved the West Bengal Assembly after the 2026 poll results, with the BJP securing a majority in the state elections.

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The West Bengal Legislative Assembly was dissolved following the conclusion of the 2026 Assembly elections, in which the Bharatiya Janata Party secured a clear majority in the state.

Governor R N Ravi issued the order dissolving the Assembly as the state prepared for the transition of power after the election results. According to reports, the BJP won 207 seats in the 294-member Assembly, while the Trinamool Congress secured 80 seats.

Chief Minister Mamata Banerjee questioned the election outcome and alleged irregularities in the poll process, claiming the mandate had been “looted”.

The dissolution came as the tenure of the existing Assembly ended on May 7, 2026. The development has sparked political discussions over the formation of the next government in the state.

Meanwhile, Mamata Banerjee held a meeting with newly elected Trinamool Congress MLAs in Kolkata and reportedly raised concerns over internal sabotage during the elections.

The BJP is expected to begin the formal process of government formation in West Bengal after its decisive victory in the Assembly polls.

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Eknath Shinde’s helicopter returns to Mumbai mid-flight due to bad weather

Maharashtra Deputy Chief Minister Eknath Shinde’s helicopter was forced to return to Mumbai after the pilot detected approaching storm conditions during a flight to Thane district.

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A helicopter carrying Maharashtra Deputy Chief Minister Eknath Shinde was forced to return to Mumbai on Thursday after encountering adverse weather conditions during a flight to Thane district.

According to officials, Shinde had departed from Mahalaxmi Racecourse in south Mumbai around 3.30 pm and was travelling to Murbad in Thane district to attend a wedding function related to a party worker’s family.

The helicopter reportedly reached the Airoli area in Navi Mumbai when the pilot noticed an approaching storm and informed the deputy chief minister about the deteriorating weather conditions. Following the alert, the flight was turned back as a precautionary measure.

The helicopter later landed safely at the Pawan Hans facility in Juhu, Mumbai. Officials said Shinde was accompanied by members of his staff, including personal assistant Prabhakar Kale, special executive officer Balsingh Rajput and media adviser Vinay Patrdukar.

The incident comes amid changing weather conditions and storm activity reported in parts of Maharashtra in recent days.

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Nitish Kumar’s son Nishant among 32 inducted in Bihar cabinet expansion

Nishant Kumar entered the Bihar cabinet for the first time as 32 ministers from NDA allies took oath in a major expansion of the state government.

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Bihar government cabinet

A major cabinet expansion took place in Bihar on Thursday, with 32 leaders from the ruling NDA alliance inducted into the state government. Among the prominent names was Nishant Kumar, son of former Bihar chief minister Nitish Kumar, who entered the cabinet for the first time.

The expansion included representatives from all major NDA allies in the state. According to reports, the BJP secured 15 ministerial berths, while JD(U) got 13 positions. Two ministers were inducted from Lok Janshakti Party (Ram Vilas), while Hindustani Awam Morcha and Rashtriya Lok Morcha received one berth each.

The oath-taking ceremony was held in Patna in the presence of senior NDA leaders, including Prime Minister Narendra Modi, Union Home Minister Amit Shah and Defence Minister Rajnath Singh.

Nishant Kumar’s induction comes weeks after he formally entered active politics. His entry into the Bihar cabinet is being viewed as a significant development for JD(U), which had long projected an anti-dynasty image under Nitish Kumar’s leadership.

The cabinet reshuffle follows Nitish Kumar’s move to the Rajya Sabha earlier this year and the formation of the government led by Chief Minister Samrat Choudhary.

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