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SBI chairman Rajnish Kumar said that RBI's downward revision in GDP and inflation projections reveals near term global headwinds and lower than anticipated rainfall might add to uncertainties. Overall, he said that it is a forward-looking policy catering to the demands of the various market participants.
V S Parthasarathy, CFO, Mahindra Group said that by giving a 'Doosra' rate cut, the RBI has, amidst all 'field restrictions', provided a window to spur consumption growth. With inflation remaining in the comfort zone, Parthasarathy said that the need of the hour is monetary transmission through durable liquidity.
The next meeting of the MPC is scheduled during June 3, 4 and 6, 2019. Most economists are expecting another 25 basis points repo rate cut in the June policy.
Chief economic adviser says that the SC order issue can be worked out together between the government and RBI.
The government had revised upwards the fiscal deficit target for 2018-19 fiscal to 3.4 percent from 3.3 percent projected in the budget. For current fiscal, which begun on April 1, the fiscal deficit target has been set at 3.4 percent.