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Last Updated : Apr 04, 2019 02:48 PM IST | Source: Moneycontrol.com

RBI cuts FY20 GDP growth forecast to 7.2%

For the first half of FY20, GDP growth is seen at 6.8-7.1 percent, down from the previous projection of 7.2-7.4 percent.

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The central bank's Monetary Policy Committee (MPC) has cut its GDP growth forecast for FY20 to 7.2 percent.

The Reserve Bank of India (RBI) had in February projected a GDP growth forecast of 7.4 percent for the financial year 2018-2019.

"There are some signs of domestic investment activity weakening as reflected in a slowdown in production and imports of capital goods.  The moderation of growth in the global economy might impact India’s exports," The MPC said in its policy statement.

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For the first half of FY20, GDP growth is seen at 6.8-7.1 percent, down from the previous projection of 7.2-7.4 percent.

For H2 of the current financial year, the GDP growth forecast has been cut to 7.3-7.4 percent from 7.5 percent earlier.

"Since the last MPC meeting in February 2019, global economic activity has been losing pace," the MPC said.

The MPC added that economic activity has slowed down in some emerging market economies (EMEs).

The RBI cut its key rates by 25 basis points, bringing the repo rate down to 6 percent.

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First Published on Apr 4, 2019 12:23 pm
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