Clear indication of economy losing traction: RBI Governor

Mumbai, June 20 (IANS) Reserve Bank of India Governor Shaktikanta Das had, in the last Monetary Policy Committee (MPC) meeting, said that there is clear evidence of economic activity losing traction while giving the rationale for a rate cut.

"Overall, there is clear evidence of economic activity losing traction, with the GDP growth in Q4:2018-19 slowing down to 5.8 per cent," he said, as per the minutes of the last MPC meeting.

Das further noted that "growth impulses have clearly weakened", while the headline inflation trajectory is projected to remain below 4 per cent throughout 2019-20 even after considering the expected transmission of the past two policy rate cuts.