Imports at 18-month low.
Foreign trade data for Feb’19 corroborated the recent signs of growth deceleration.
The slowdown in exports and contraction in imports during the month were broad-based.
The lowest trade deficit in over a year offers a clue to the reason for the recent appreciation of the rupee and the RBI’s decision to provide rupee liquidity through a forex swap rather than OMO.
The bank’s bid to avert sharp appreciation in the rupee would find further support with the likely
a rate cut at the forthcoming monetary policy meet.
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