RBI forecasts economic contraction, announces a sharp 40-bp rate cut

Projecting a contraction in growth for the latest fiscal, the Reserve Lender of India (RBI) on Friday went for a further 40 basis points slash in policy repo price, even as it warned that inflation, particularly in food, is on the rise yet again.

Repo price is the curiosity price the banking companies give the RBI to borrow revenue.

The 6-member financial policy committee (MPC) also held the policy stance unchanged at ‘accommodative’ for “as extensive as necessary” to revive growth.

“It is in the growth outlook that the MPC judged the hazards to be gravest,” RBI governor Shaktikanta Das

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Economic downturn may be deep, sharp, and short-lived


Tim Buckley: John, as you know, our consumers enjoy hearing from Joe Davis, our global chief economist. But they only hear the surface of his outlook. You get his complete in-depth examination and you get to discussion it with his team. So give us a window into that. What do you men do? What is your outlook proper now and how are you putting it in movement with our funds?

John Hollyer: Yes, Tim, at the best degree, doing the job with Joe, we have gotten his team’s insights that this is likely to be a pretty

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Expectations for recession: Sharp but hopefully short


Greg Davis:  There’s been a good deal of worry all over the R term “recession”. What’s your team’s thoughts in phrases of the likelihood that we’re likely to enter a recession and what you would be searching out for?

Joe Davis:  Well, unfortunately, Greg, you know the U.S. financial state is likely to enter a deep recession. You know, the character of the attempts to include the virus has also led to closures or suspension of a good deal of company exercise, especially in the provider sector. And so our estimate is that the financial state will agreement, on

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