India RBI Key Points of the Monetary Policy Statement

Gold Silver Reports (GSR) – India RBI Key Points of the Monetary Policy Statement — Reserve Bank of India Governor Urjit Patel and his monetary policy committee lowered inflation projections on Thursday, raising expectations that interest rates will be on hold for sometime to come. That may boost flagging investments and demand, both of which were hit by a cash ban imposed in late 2016 and the chaotic implementation of a consumption tax last year.                                                

Read More: Consumer Confidence Fell In March After December Uptick: RBI Survey

Slowing inflation, accelerating growth and an economy that relies on domestic consumption may help cushion India from the escalating trade war between the U.S. and China. The Reserve Bank forecasts the $2.3 trillion economy will expand 7.4 percent in the financial year to March 2019. That’s faster than a 6.5 percent expansion projected for China in 2018

⭐ CPI forecast for first-half of FY19 revised to 4.7-5.1% from 5.1-5.6%; second-half forecast at 4.4% from 4.5-4.6%      

⭐ GDP growth seen at 7.4% in FY19 vs 6.6% in previous year, “with risks evenly balanced”                     

⭐ Rising trade protectionism, financial market volatility could derail global recovery; says Indian companies and banks must continue cutting debt               

⭐ RBI exploring creation of a digital currency; forms panel to study and submit report by June

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