The market remained lacklustre post announcement of RBI policy. The Reserve Bank of India kept repo rate unchanged at 7.5 percent and cash reserve ratio at 4 percent.
RBI says retail inflation will remain below 6 percent in FY16. "CPI inflation is expected to fall to 4 percent by August but firm up to 5.8 percent by year-end."
The Reserve Bank says GDP growth under new methodology is seen at 7.8 percent in FY16.
RBI feels the outlook for growth is improving gradually. Comfortable liquidity conditions should enable banks to transmit the recent reductions in the policy rate into their lending rates, thereby improving financing conditions for the productive sectors of the economy.