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Showing posts from April, 2019

NEW ISSUE: APRIL - JUNE 2019

The Central Bank, on 4 April 2019, in its first bi-monthly policy review for the financial year 2019-20 has slashed the policy rate by 0.25 percent to 6% for the second time in a row.  More room for rate cuts was denied immediately in the face of impending General Elections from April 11 to May 18.

The output gap remains negative and the domestic economy is facing headwinds especially on the global front. The need is to strengthen domestic growth impulses by spurring private investment which has remained sluggish. The resolution of the bad loans will be an immediate concern for the RBI to issue revised directives to its member banks.

Fitch Ratings has rated  Indian Economy at BBB- showing lowest investment grade rating which has remained unchanged for the last 13 years. Election campaign promises to support farmers'incomes including direct cash transfers and farm loan waivers will add to spending measures in FY 2019-20. Next government is likely to have a smaller majority in the …