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RBI Says Covid-19 Drastically Alters India's Outlook

The Reserve Bank of India said the coronavirus, or covid-19 pandemic has drastically altered India's economic outlook.

In its monetary policy report, released Thursday, the RBI said covid-19 would impact economic activity in India directly due to lockdowns, and through second round effects operating through global trade and growth.

The actual outturn would depend upon the speed with which the coronavirus outbreak is contained and economic activity returns to normalcy, the bank said. Monetary and fiscal measures would mitigate the adverse impact of covid-19.

"But COVID-19 hangs over the future, like a spectre," RBI concluded.

Looking ahead, the bank said the balance of inflation risks is slanted further to the downside. Inflation is forecast to ease to 4.8 percent in the June quarter and to 4.4 percent in the September quarter.

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