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Prime Minister Narendra Modi announced a nationwide lockdown from March 25 until April 12 in an attempt to fight COVID-19, effectively asking more than 1.3 billion Indians to stay at home. The lockdown will have a huge impact on the Indian economy, per Rabobank.

Key quotes

“We expect the Indian economy to grow by 2.5% y/y in fiscal 2019Q4 and contract by 5.7% y/y in fiscal 2020Q.”

“We expect the RBI to continue to announce liquidity-boosting measures in the upcoming months and a cut of the repo rate of 50 bps at the next meeting of the Monetary Policy Committee.”

“We expect the rupee to continue to hover between 76 and 77 against the US dollar.”