However, the transmission has already taken place and the further rate cut would depend on how long this low cost deposits stays with the bank.25 China Folding Umbrella Manufactures per cent.There are expectations of 25 basis point rate cut as there is excess liquidity in the system, UCO Bank MD CEO R K Takkar said.However, WPI or wholesale inflation fell in December but the rate of decline at 0.8 per barrel, while President Trump has announced a host of protectionist measures which will impact the global economy, including India. By advancing the presentation of the Budget by a month, the government is conveniently spared the consideration of GDP figures released by the CSO for the October-December 2016 quarter. Yet that is exactly what the Union Budget for 2017 and the Economic Survey preceding it seem to have done.1 per cent growth for the half year ending September 2016, before the note ban was effected on November 8. But sooner rather than later it will have to confront the declining trend in the country that the notebandi has initiated. But despite their high visibility, the fundamentals of the economy remain weak.

This means that retail demand is still low two and a half months after demonetisation was announced. "Such a sharp decline in trade and other reports from the field from industry suggest that the economy is facing recessionary conditions," maintains Mr Kumar.4 per cent, as compared with a 3. Since 2012 it has averaged two to three per cent. These figures are normally released in mid-February, in time for the normal Budget, and would likely have presented a bleaker account.Now, a week after the Budget, the Reserve Bank of India has considerably sobered expectations by not lowering the repo rate despite expectations from the corporate sector that it would reduce the repo rate below 6.Unemployment has increased, specially in the unorganised sector, which employs over 90 per cent of the workforce. Making no estimate of the loss caused to the economy and to livelihoods by the abrupt notebandi, the finance minister’s speech goes on to quote the International Monetary Fund, which predicts a growth rate of 7.

This was after a period when the RBI was seen as abdicating its responsibility and independence by refusing to release up-to-date data about the demonetisation, its confusing and contradictory orders to banks and its acquiescence in the government’s reckless experiment on notebandi. The RBI was sceptical about the government’s figures, as the government appears to be fiscally responsible while pushing for more public investment but the fiscal deficit is not based on a reasonable estimate. That means, unless people are suddenly using cash credit twice as efficiently as they have done so far, real growth has probably also halved.2 per cent in 2017, not very different from the estimate by the Central Statistics Office (CSO) of 7.