Its commentary on the state of the economy and its outlook too has qualitatively changed — from being “optimistic” in April to expressing “concerns” in August and calling for “intensified efforts to restore the growth momentum” in October.
A re-reading of the Reserve Bank of India’s monetary policy statements over the last six months shows the central banker has downgraded the GDP growth projection for 2019-20 by more than a full percentage point — from 7.2% in April to 6.1% now.
Its commentary on the state of the economy and its outlook too has qualitatively changed — from being “optimistic” in April to expressing “concerns” in August and calling for “intensified efforts to restore the growth momentum” in October.
Paring down the GDP growth forecast for the current financial year by 80 basis points to 6.1% on Friday from 6.9% in August, the RBI’s Monetary Policy Committee said while various high frequency indicators suggested domestic demand conditions remained weak, there were indications of muted expansion in demand conditions in the third quarter.”
“While recent measures announced by the government are likely to help strengthen private consumption and spur private investment activity, the continuing slowdown warrants intensified efforts to restore the growth momentum,” the RBI said in its Friday statement.
0 Comments