Login ID:
Password:
Partner Login
Contact Us : 7066511911

RBI Pegs GDP Growth At 7.4% In 2019-20

7 Feb 2019 5:30 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

MUMBAI (Commoditiescontrol) - The Reserve Bank of India on Thursday projected an economic growth rate of 7.4 percent for the next fiscal, up from 7.2 percent estimated for the current fiscal by Central Statistics Office (CSO).

The gross domestic product (GDP) growth is likely to be influenced by growth in bank credit and overall financial flows to the commercial sectors, though slowing global demand could play a dampener, said an RBI document released after the three-day meeting of the central bank's Monetary Policy Committee (MPC).

The RBI had projected the GDP growth for 2018-19 in the December policy at 7.4 percent (7.2-7.3 percent in H2) and at 7.5 percent for H1:2019-20, with risks somewhat to the downside.

The CSO has estimated GDP growth at 7.2 percent for 2018-19.

"Looking beyond the current year, the growth outlook is likely to be influenced by... Aggregate bank credit; and overall financial flows to the commercial sector continue to be strong, but are yet to be broad-based," the MPC said.

It further said that in spite of soft crude oil prices and the lagged impact of the recent depreciation of the Indian rupee on net exports, slowing global demand could pose headwinds.

"In particular, trade tensions and associated uncertainties appear to be moderating global growth," it said.

RBI Governor and member of the MPC Shaktikanta Das said the risks are evenly balanced for growth.

The six-member MPC, headed by Das, also noted that the output gap has opened up modestly as actual output has inched lower than potential.

Investment activity is recovering, but supported mainly by public spending on infrastructure, it said.

The need is to strengthen private investment activity and buttress private consumption, said the MPC document, as the central bank reduced the key lending rate by 0.25 per cent, for the first time in the current fiscal.

(By Commoditiescontrol Bureau)


       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Latest Market Commentary
U.S. Dollar Index—A Near-term Pause Within a Long-term ...
more
Top 5 News
Malaysia's August 1-20 Palm Oil Exports Up 8.70% MoM: I...
Argentina And Brazil Soy Oil FOB Rates of Seller And Bu...
CBOT Soybeans Drop On Technical Selling Amid Improved W...
ICE Cotton Ends Down; Weekly Crop Quality Report Shows ...
ICE Sugar Ends At Over 1-Week Lows As Brazilian Real E...
Top 5 Special Reports
USD/MYR—Backing Away from Resistance at 4.2000
USD/IDR—Near the Midpoint of a Multi-month Range (13,90...
USD/BRL—Approaching Symmetrical Triangle Pattern Resist...
U.S. Dollar Index—Remains on an Upward Trajectory
Weekly: ICE Sugar Ends Down As Brazilian Real Sinks Be...
Copyright © CC Commodity Info Services LLP. All rights reserved.