The Reserve Bank may consider the coronavirus-related developments

Singapore, Ta. 25 February 2020, Tuesday

The supply chain from China that has been lost is likely to be considered by the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) for coronavirus-related incidents, a DBS Bank report said.

In a report prepared by DBS, the bank's economist noted that the impact on India was being affected by the loss of supply chain from China. India imports huge quantities of goods from China.

If the impact of the coronavirus continues in the second quarter of 1, the report is likely to temporarily increase prices with a delay in production. The Reserve Bank's MPC is also likely to consider events.

The virus has stalled economic activity in most parts of China, the world's second largest economy, and has impacted most industries. The World Health Organization has declared the coronavirus crisis as a global health crisis.

The Indian economy is still in the middle of bottoming out. It will be seen at a weak level before the reform begins, the report also said.