The Reserve Bank of India (RBI) cut key interest rates for the fourth time this year on Wednesday as it strives to boost corporate investment and consumer spending to accelerate stubbornly slow economic growth, which it now expects will not exceed 6.9% in the current financial year, as both domestic and external demand stay weak.A cut of 35 basis points in the repurchase, or repo, rate, at which the central bank lends funds to commercial banks, took the cumulative reduction since February to 1.1 percentage point. One basis point is one-hundredth of a percentage point. The repo rate is now 5.4%, the lowest in nine years.“Since the last policy (in June), domestic economic activity continues to be weak, with the global slowdown and escalating trade tensions posing downside risks. Private consumption, the mainstay of aggregate demand, and investment activity remain sluggish,” RBI said in its monetary policy statement.That prompted the six-member monetary policy committee (MPC) to lower the gross domestic forecast to from 7% in June policy to 6.9%, in the range of 5.8-6.6% for the first half of the fiscal year (April-September) and 7.3-7.5% in the second half (October-March). The forecast had been slashed to… Read full this story
- Economy ministry says cuts 2018 GDP growth outlook to 1.8% from 1.9%
- Moody's assigns city of DeKalb same A1 rating with negative outlook
- Finland’s labour markets, long-term growth outlook concerns for economists
- RBI Has Enough Room to Cut Rates Further, Says Morgan Stanley’s Desai
- Fed’s George Sees No Need to Cut Rates Unless Slowdown Deepens
- IMF cuts growth outlook
- Argentina Cuts GDP Growth Outlook to Negative, Forecasts Poverty to Rise
- Growth outlook lowered by business body
- China announces tax cuts to support growth
- Thai government maintains 3 percent GDP growth target
RBI cuts rate, scales down growth outlook have 279 words, post on www.hindustantimes.com at August 7, 2019. This is cached page on VietMaz. If you want remove this page, please contact us.