Global growth to slow down in 2019, Forecasts for India through 2021 intact, says World Bank. DHFL misses interest payment, exposed Mutual Funds suffer. Fed Governor hints towards Rate Cut, Trade War cited as concern. India's Services PMI hits 12-month low, thanks to electoral disruptions. New Draft National Education Policy to be a game changer for Nurses. Critics claim Old wine in new bottle.
Global growth to slow down in 2019, Forecasts for India through 2021 intact, says World Bank
What?: World Bank recently released its June 2019 Global Economic Prospects (GEP) Report, which maintained that Global growth has continued to soften this year, downgrading real GDP growth to 2.6% for 2019, down 0.3% points vs its prior forecast in January.
Why?: Subdued investment in emerging market and developing economies (EMDEs) cited as principal drivers. Outlook deemed as negative, possibly due to escalating trade tensions. Rising debt to make recovery increasingly challenging.
India: India's growth projections in FY19/20 maintained at 7.5%, unchanged from previous forecasts. Strengthening credit growth and accommodative monetary policy of the RBI to provide support. Outlook for South Asia at-large positive, barring risk of military escalations.
Fed Governor hints towards rate cut, Trade War cited as concern
The Speech: Jerome H. Powell, Federal Reserve chairman alluded that the Fed was prepared to act "to sustain the expansion", if President Trump’s trade war weakens the economy. US markets interpreted this as a potential rate cut. S&P 500 up 2.14%.
“We do not know how or when these issues will be resolved”
"We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective.”
I Concur: Sarah Bloom Raskin, member of the Fed board from 2010 to 2014 said “I think Chairman Powell has given a message to markets that’s indicating that a rate cut is coming. This is, in essence, a very strong signal that the FOMC is actually ready to talk about cutting rates.”
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