New Delhi: Wall Street brokerage Bank of America Securities has cut its March quarter growth forecast by 30 bps to 4%, amid coronavirus pandemic-driven shutdowns and expects a cut in key benchmark rates on or before the April 3 monetary policy review.
The brokerage expects the pandemic-driven lockdowns to run through mid-April, crippling economic activities across the value-chain.
The agency also pegged down FY20 growth forecast to 4.7% and FY21 to 5.1%, respectively, assuming a 2.2% global growth. If the global economy falls into a recession, the domestic economy is likely to fall further to 4.4% in FY21, it warned.
The brokerage has also lowered its forecast for the June quarter (first quarter of 2020-21) by a sharper 80 bps to 4% citing the pandemic impact on economic activities even as the government is taking measures.