Reportedly the Reserve Bank of india (RBI) is set to cut interest rates in August for the fourth meeting in a row, according to a Reuters poll of economists, a majority of whom said risks to their already modest growth forecasts were skewed more to the downside.
If the RBI does cut rates next month, it will be the most aggressive among dovish central banks in Asia. The last time the RBI delivered so many back to back cuts was after the global financial crisis over a decade ago, when most major central banks went on a cutting spree to revive economic growth. Almost 80 per cent of 66 economists in the July 17-24 poll expected the RBI to cut its benchmark repo rate by 25 basis points to 5.50 per cent at the August 7 meeting. Three respondents predicted a 50 basis points cut and the remaining 10 forecast policy on hold.
"It is baked in the cake. They are going to cut rates in August and again later, mainly due to low growth and weak inflation," said Gareth Leather, senior Asia economist at Capital Economics.
IMF projected India's growth rate at 6.1% in 2019 The IMF on Tuesday slashed India's GDP growth projection for the year 2019 to 6.1 per cent, which is 1.2 % down from its April projections. The International Monetary Fund (IMF) in April said India will grow at 7.3% in 2019. However, three months later it projected a slower growth rate for India in 2019, a downward revision of 0.3%.
- IMF projected India's growth rate at 6.1% in 2019
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