Wait...
  1. Home >
  2. Export Import News >
  3. Economy News >
  4. RBI may cut rates by another 25 bps in 2019: Fitch Ratings >
  5. RBI may cut rates by another 25 bps in 2019: Fitch Ratings

Online Export Import Data Search

recentSearch
Complete Training Video : Click Here

RBI may cut rates by another 25 bps in 2019: Fitch Ratings.


Date: 18-06-2019
Subject: RBI may cut rates by another 25 bps in 2019: Fitch Ratings
The Reserve Bank of India (RBI) is likely to cut interest rates by another 25 basis points in 2019, following three cuts of a similar quantum so far, due to weak growth momentum and inflation remaining within targeted limits, Fitch Ratings said on June 17.

The RBI cut the repo rate to 5.75% on June 6, its third cut in 2019, while also changing its policy stance to "accommodative," after data showed the economy growing at its slowest in over four years.

"We expect another 25 bps cut later in 2019, which will push the policy repo rate down to 5.50%," Fitch wrote in its Global Economic Outlook report.

"Monetary and regulatory easing from the RBI, along with a recovery in portfolio inflows, should support a recovery in credit to the private sector and reverse the drag from the negative credit impulse".

Lower lending by non-banking financial companies has weighed on growth in infrastructure and consumption, even though banks have partially compensated by ramping up their lending to the private sector, the ratings agency said.

"The overall credit impulse – that is the change in new borrowing provided by the financial sector (banks and non-banks) - has turned significantly negative in fiscal year 2018/19."

Rural households income and consumption is expected to be supported by the pick-up in food inflation and increased cash transfers by the government to farmers, Fitch said in the note.

Inflation has sharply come down from a peak of more than 12% in 2013, and has now come in below the RBI's medium-term target of 4% for 10 consecutive months. Annual retail inflation stood at 3.05% in May

The slowdown over the past year has been driven by steadily cooling activity in the manufacturing sector and, to a lesser extent, agriculture, the note added.

"Weaker momentum has been mainly domestically driven, though export growth has also faltered more recently".

India's economy grew at 5.8% in the January-March period, its slowest pace in more than four years and falling behind China's pace for the first time in nearly two years.

"We see growth for 2019/20 printing at 6.6%, before stepping up to 7.1% in 2020/21 and 7.0% in 2021/22".

Source: moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 13-08-2019
Notification No.59/2019 - Customs (N.T.)
Exchange Rates Notification No.59/2019-Custom(NT) dated 13.08.2019.

Date: 13-08-2019
Instruction No. 03/2019-Customs
Recovery of Export benefits given under incentive and Reward Schemes under Chapter 3 of FTP on re-import of export goods.

Date: 10-08-2019
NOTIFICATION No. 32/2019-Customs (ADD)
Seeks to impose anti-dumping duty on imports of "Homopolymer of vinyl chloride monomer (suspension grade)" originating in or exported from China PR and USA for 30 months with effect from 13th August, 2019, in pursuance of SSR investigation by DGTR.

Date: 08-08-2019
Notification No. 57/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver.

Date: 08-08-2019
Trade Notice 29/2019-20
Online filling of applications for claiming assistance under Transport and Marketing Assistance (TMA) for Specified Agriculture Products Schem

Date: 08-08-2019
Notification No. 58/ 2019-Customs (N.T.)
Further amending Notification No. 12/97-CUSTOMS (N.T.), dated the 2nd April, 1997

Date: 08-08-2019
Circular No. 24/2019-Customs
Clarification regarding applicability of All Industry Rates of duty drawback while fixing Brand Rate of duty drawback in post GST era.

Date: 06-08-2019
Notification No. 31/2019-Customs(ADD)
seeks to amend notification No.12/2019-Customs (ADD) dated the 26.02.2019 as per Corrigenda issued by Designated Authority vide notification F. No. 6/45/2017-DGAD 31.05.2019.

Date: 05-08-2019
Notification No. 56/2019 - Customs (N.T.)
Exchange Rates Notification No.56/2019-Custom (NT) dated 05.08.2019

Date: 05-08-2019
Notification No. 33/2019-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI



Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001