Moneycontrol
Last Updated : Feb 07, 2019 06:07 PM IST | Source: Moneycontrol.com

RBI MPC meet: Central bank pegs GDP growth at 7.4%

The committee said that despite softening of crude oil prices and the lagged impact of the recent depreciation of rupee on net exports, slowing global demand could pose headwinds.

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Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on February 7 pegged the GDP growth for FY20 at 7.4 percent, up from the FY19 government estimate of 7.2 percent.

With risks evenly balanced, RBI expects a GDP growth of 7.2-7.4 percent in H1 (April-September), and 7.5 per cent in Q3 (July-September).

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 pose headwinds, according to the RBI document released after the three-day meeting of the central bank's MPC.

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

The committee further added that despite softening of crude oil prices and the lagged impact of the recent depreciation of the 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.
First Published on Feb 7, 2019 01:13 pm
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