RBI to pick up slack as stimulus measures to fall short, say economists ahead of MPC meet
Updated : October 04, 2019 09:23 AM IST
Recent stimulus measures announced by the Indian government will be insufficient to boost economic growth significantly, said a majority of economists in a Reuters poll who predicted two more interest rate cuts this year, in October and December.
To revive the ailing economy, the government in September announced a steep cut in the corporate tax rate — to 22 percent from 30 percent — triggering the biggest intraday gain in Indian stocks in more than a decade.
Although the economy is expected to have recovered last quarter from the sharp slowdown in the three months prior, economists downgraded their growth outlook for this fiscal year and next from three months ago.
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