While directly mum on inflation and growth, the RBI’s latest monetary policy report warns that Covid-19 would impact economic activity in India through lockdowns and slowing global trade and growth.
At the last monetary policy meeting of FY20, the central bank kept the interest rate unchanged, with a warning to not read the ‘pause’ continually for its future actions.
Advance estimates from the National Statistical Office (NSO) peg India’s GDP to grow at 5% in FY20 as compared to FY19’s 6.8%; manufacturing is projected to grow just 2%.
