RBI policy highlights :
RBI has cut repo rates by 25 bps and maintained neutral stance. GDP for 2020 is expected to be 7.2%, down from 7.4%. GDP for FY18-19 is expected to be at 7%. Inflation is expected to be 2.9-3.1% in first half and 3.5 to 3.8% in H2 of FY 20.
Risks to growth are from 1) Poor monsoon, 2) Crude prices, 3) Global trade war.
RBI Governor said that high frequency indicators are pointing to sluggish manufacturing and subdued investment demand. He also said that trade deficit shrunk to 17 month lows in Feb, though export growth was tepid. FDI inflows are robust. FX reserves stands at USD 412.7 bn.
USDINR is now at 68.80 and Equity markets are trading flat.