In this article, we will discuss Recent Signs of Economic Slowdown. So, let’s get started.
Recent Signs of Economic Slowdown
- The collapse of IL&FS in September 2018.
- The financial sector is on the brink as indicated by huge number of Non-Performing Assets (NPAs).
- Though the Reserve Bank of India has cut the key policy rates (like Repo rate), the banks have not transferred the same to the final consumers. Thus, the two critical needs of the industry i.e. cost of credit and availability of credit, have not been met fully.
- The cumulative cut of 135 basis points by the RBI over the last nine months has translated into a meager 29 basis points (just over a fifth), with banks still retaining a huge spread.
- Cost of credit continues to remain high for most companies and the worst affected are small and medium enterprises.