NEW DELHI -- The Reserve Bank of India, the country's central bank, on Friday forecast that the Indian economy will contract 9.5% in the current fiscal year through March 2021 as the fallout from the coronavirus pandemic severely crimps business activity.
The RBI, meanwhile, kept its key interest rate unchanged at 4% owing to rising retail inflation owing mainly by supply side disruptions triggered by the coronavirus pandemic. A Reuters poll of economists before the announcement had predicted the bank would keep the policy rate on hold.
