Flagging recovery

Another rate cut will not help at this point

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Reserve Bank of India | monetary policy committee

Flagging economic recovery would be a key concern for the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), which is meeting to review the policy this week. The Manufacturing Purchasing Managers’ Index, for instance, fell to 46 in July against 47.2 in June.

Although a reading below 50 indicates contraction, the latest print suggests firms are facing difficulties and economic activity would remain muted until the virus is contained. A number of states have imposed localised lockdown, which is affecting supply chains and consumer demand. Other indicators also ...
First Published: Mon, August 03 2020. 23:15 IST