The Reserve Bank in its fifth bi-monthly review of this fiscal kept repo rate unchanged at 6 per cent and reverse repo at 5.75 per cent, while raising the inflation forecast for the remainder of 2017-18 to 4.3-4.7 per cent.
As per the document, India's exports growth has started coming down again after picking up for a few initial months in this calendar year. It noted that exports have started their downward trajectory from May.
"Looking ahead, our below-consensus view is that growth will remain flat at 7.1 per cent in 2017-18," HSBC Chief India Economist Pranjul Bhandari said in a research note. According to official data, India's growth rate slipped to 6.1 per cent in the January-March quarter and 7.1 per cent during 2016-17