With domestic economic activities slowing down in recent months,the Reserve Bank indicated that further measures to stimulate growth could be in the offing. "The global economic outlook has deteriorated sharply since September 2008. In India too,there is evidence of a slowing down of economic activity," the RBI said in its Macro Economic and Monetary Developments Third Quarter Review,2008. The central bank,which has cut its signalling rates several times since October,said the expenditure is slated to increase on account of the fiscal stimulus measures taken by the Government to tackle economic slowdown. RBI cut the cash reserve ratio to 5.5 per cent,repo rate to 4.5 and reverse repo rate to 4 per cent since October as part of coordinated efforts with the Finance Ministry to support the sagging growth. Meanwhile,the country's exchequer is likely to witness a slowdown in tax revenue in the coming months owing to the moderation in economic activity,RBI said.
