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economy | IST

RBI MPC minutes: Economic activity losing traction, several uncertainties to baseline inflation, says Shaktikanta Das

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Indian economy is losing traction as the gross domestic product (GDP) growth in Q4 slumped to 5.8 percent, the Reserve Bank of India governor Shaktikanta Das observed in the monetary policy committee (MPC) minutes.

Indian economy is losing traction as the gross domestic product (GDP) growth in Q4 slumped to 5.8 percent, the Reserve Bank of India governor Shaktikanta Das observed in the monetary policy committee (MPC) minutes.
“There is clear evidence of economic activity losing traction, with the GDP growth in Q4:2018-19 slowing down to 5.8 percent,” Das said.
“There are several uncertainties to the baseline inflation — the progress of monsoon, unexpected spikes in vegetable prices, international petroleum product prices, volatility in financial markets, and the fiscal situation,” the RBI chief added.
India’s economy grew at 5.8 percent in the January-March quarter of FY19, dragging down the overall growth rate for the year to 6.8 percent.
In its June meeting, the RBI MPC reduced the key repo rate by 25 basis points to 5.75 percent and changed the stance to ‘accommodative’ from ‘neutral’ in order to boost the flagging economy.