Tuesday, January 27, 2009

RBI Sees Slowdown In Economy - Jan 27, 2009

The Reserve Bank of India has indicated that further measures to stimulate growth could be in the offing, with the domestic economic activities slowing down in recent months. The Reserve Bank''s macroeconomic review for the third quarter said that the slowing down of economy and easing of inflation, which hinting at some more steps by the apex bank in its monetary policy today to stimulate demand and push growth.

"The global economic outlook has deteriorated sharply since September 2008... In India too, there is evidence of a slowing down of economic activity", the RBI said in its Macro Economic and Monetary Developments Third Quarter Review, 2008.

The central bank said that the expenditure is slated to increase on account of the fiscal stimulus measures taken by the government to tackle the economic slowdown. RBI since October has cut the cash reserve ratio to 5.5 per cent, repo rate to 4.5 and reverse repo rate to 4 per cent as part of coordinated efforts with the Finance Ministry to support the sagging growth.

However, the apex bank also said that the consumption demand is expected to rise in the period ahead on the back of a slew of fiscal measures taken by the Government and RBI to stimulate demand.

No comments: