RBI says India will grow at 6.7% in 2017-18

The RBI announced Wednesday that it was keeping the repo rate unchanged at 5.75%. 

It said that it was also keeping the reverse repo rate unchanged at 6.25%. 

And it added that India would grow at 6.7% in 2017-18.

There would it said be an acceleration in growth in the second half, to 7.1% in the third quarter and to 7.7% in the fourth quarter. 

The central bank added that inflation is expected to rise from its current levels to between 4.2 to 4.6% in the second half of 2017. 

The bank added that it had revised the country's real Gross Value Added growth projection downwards to 6.7% from 7.3%. 

RBI governor Urjit Patel said the RBI expressed concern about the "weakening of the manufacturing sector in the first half of the year."

He added that measures need to be undertaken to encourage growth.  

And that "factors that have affected growth in the second quarter, some of them will dissipate." 

Leaving the repo rate and the reverse repo rate unchanged means there will be no change in people's EMIs. 

Commentators said the Reserve Bank of India is at the moment in wait-and-watch mode. 

We have just entered the festive season, which is also peak demand season. 

This is when people plan large new buys, and also when sellers offer their largest discounts. 

The commentators said the RBI would decide in December -- depending on what the figures then say about demand now -- on a change in rates. 

Should demand stay low, there might be a downward revision in rates and vice versa.