Saudi Arabia's crown prince warned in an interview to CBS's&nbsp;'60 Minutes', that oil prices could spike, and I quote, to "unimaginably high numbers" if the world does not come together to deter Iran. The crown prince clarified that&nbsp;he would prefer a political solution to a military one.
&nbsp;Mohammed bin Salman, the kingdom's de facto ruler said if action wasn't taken against Iran, oil supplies&nbsp;will be disrupted and&nbsp; prices would jump to levels we haven't seen in our lifetimes.
In September a drone attack, allegedly by Iran&nbsp;knocked out more than 5% of global oil supply from Saudi Aramco.&nbsp;

Saudi Arabia's crown prince warned in an interview to CBS's '60 Minutes', that oil prices could spike, and I quote, to "unimaginably high numbers" if the world does not come together to deter Iran. The crown prince clarified that he would prefer a political solution to a military one. Mohammed bin Salman, the kingdom's de facto ruler said if action wasn't taken against Iran, oil supplies will be disrupted and prices would jump to levels we haven't seen in our lifetimes. In September a drone attack, allegedly by Iran knocked out more than 5% of global oil supply from Saudi Aramco.

The world economy will go into recession this year with a predicted loss of trillions of dollars of global income due to the coronavirus pandemic. This indicates serious trouble for developing countries with the likely exception of India and China, according to a latest UN trade report. The UN&nbsp;said that in recent days, advanced economies and China have put together massive government packages.&nbsp;This represents an unprecedented response to an unprecedented crisis, which will reduce the extent of the shock physically, economically and psychologically, the report said.

State-run Bank of Baroda has cut its repo-linked-lending rate by 75 basis points with effect from March 28.&nbsp;This is&nbsp;in line with the reduction on RBI's repo rate by 75 bps last week.&nbsp;The revised rate&nbsp;for all retail loans and loans to MSMEs&nbsp;has been reduced to 7.25%.

CRR reduced by 100 bps for 1 year Move to release liquidity of 1 lakh 37 000 cr in banking system Minimum daily CRR balance reduced from 90 to 80%, upto June 26 2020

International Monetary Fund Managing Director&nbsp;Kristalina Georgieva&nbsp;on Monday said&nbsp;that the world will face a recession that could be as bad as the 2008 economic meltdown, or even worse.&nbsp;However, the&nbsp;IMF expects recovery in 2021. Speaking at a conference call of G20 nations,&nbsp;Kristalina&nbsp;said that to get there, it is paramount to prioritise containment and strengthen health systems everywhere. The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be, she added.
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The Reserve Bank of India on Friday announced to purchase government securities of worth ₹30,000 crore&nbsp;via Open Market Operations. With this, the central bank aims&nbsp;to ensure that all market segments function normally with adequate liquidity and turnover. The transaction will be done in two tranches&nbsp;of ₹15,000 crore&nbsp;each in March. The maturity of these bonds will be between two and nine years. The Reserve Bank purchased ₹10,000 crore&nbsp;of government bonds on March 20 as well.

Fitch Ratings on Friday cut India's growth forecast to 5.1% for the financial year 2021, saying the coronavirus outbreak is likely to hit business investment and exports. Fitch had in December 2019 projected India's growth at 5.6% for the upcoming financial year. While India&rsquo;s linkages with China are modest, manufacturers in India are heavily reliant on key Chinese inputs, especially for electronics, machinery and equipment, the rating agency said. Difficulties for the Indian economy have been exacerbated by Yes Bank failure, it said.

The Reserve Bank of India on Wednesday announced that it&nbsp;will conduct open market operations (OMO) on March 20. The central bank&nbsp;would purchase short-term government bonds worth ₹10,000 crores&nbsp;in a bid to increase liquidity and enhance confidence in the market amid the coronavirus crisis.

Asia-Pacific economic growth for the year will more than halve to less than 3% as the global economy enters a recession, according to S&amp;P Global Ratings.&nbsp;An enormous first-quarter shock in China, shutdowns across the US and Europe, and local virus transmission guarantees a deep recession across Asia-Pacific, the ratings agency said.&nbsp;The agency's estimate of permanent income losses is likely to at least double to more than $400 billion. S&amp;P lowered its growth forecast for China, India, and Japan for 2020 to 2.9%, 5.2%, and negative 1.2%, respectively.

Direct tax collections from April 2019 till date have slipped 5.3% over the previous year, CNBC&nbsp;tv18 reported on Wednesday. Citing government sources, it said direct tax collections as of March 18 stand at ₹9.56 lakh crore&nbsp;as against ₹10.09 lakh crore during the same period of previous year.&nbsp;In Union Budget 2020, the government had revised the tax collections target to ₹11.70 lakh crore&nbsp;from ₹13.35 lakh crore&nbsp;earlier.

Experts estimate that the Reserve Bank may go for a rate cut before the next scheduled policy review on April 3. The central bank is likely to slash rates by 75 basis points in 2020 as inflation ebbs, a foreign brokerage said. Central banks have been cutting rates and injecting liquidity to counter economic slowdown because of the coronavirus pandemic.&nbsp;

The Bank of England on Wednesday announced an emergency cut in interest rates in an attempt to limit the economic impact from the new coronavirus. The central bank of UK&nbsp;reduced bank rate by 50 basis points to 0.25%. The announcement follows a similar decision by the US Federal Reserve last week.

In less than a month&rsquo;s time, rating agency Moody&rsquo;s Investors Service has lowered its baseline growth projections for India to 5.3% for 2020 from 5.4% earlier, cautioning that an extensive and prolonged slump as a result of COVID-19 outbreak will reduce growth in Asia&rsquo;s third-largest economy to 5% during the same calendar year. On February 17, the rating agency had reduced India's growth projection to 5.4% from 6.6% earlier for the calendar year 2020.&nbsp;When asked to comment on the new forecast, Union Minister of State for Finance Anurag Thakur said&nbsp;it's natural that coronavirus impact will fall on every country's economy.&nbsp;

Coronavirus&nbsp;panic which has led to a steep decline in the global crude oil prices has a great advantage for Indian economy. India's crude oil import bill during FY19 was around $112 billion and in the current fiscal it is ₹87.7 billion till January. From over $70 a barrel in January this year, Brent spot price has more than halved to nearly $32 a barrel. If the price remains around $30 for most of 2020, import bill could reach its all time low in many years.&nbsp;Indian billionaire banker, Uday&nbsp;Kotak&nbsp;called the turbulence caused in the crude oil prices a good news. When Brent reached $45 a barrel he tweeted that the recent $20 drop saves India $30 billion per annum. India depends on oil imports to meet 86% of its oil requirements. Lower import bill would also have positive impact on country's fiscal deficit.&nbsp;Out of the total&nbsp;$507.44 billion worth of import by India in FY19, oil imports were of&nbsp;$112 billion. With lower demand for US dollar to purchase crude oil, the Indian rupee could also become stronger against the greenback.&nbsp;

According to a UN report, the trade impact of the coronavirus epidemic for India is estimated to be about $348 million and the country figures among the top 15 economies most affected as a manufacturing slowdown in China disrupts world trade. The trade impact for India is, however, less as compared to other economies such as EU, the US, Japan and South Korea.&nbsp;For India, the trade impact is estimated to be the most for the chemicals sector at $129 million.

The Employees' Provident Fund Organisation or the EPFO,&nbsp;on Thursday lowered the interest rate on provident fund deposits to 8.5% for the financial year 2020,&nbsp;a seven-year low. The EPFO&nbsp;had provided 8.65% rate of interest in 2018-19 to its around six crore subscribers. The officials said that there would have been a deficit if the EPFO had provided a rate of more than 8.55% for the current fiscal. Labour Minister Santosh Gangwar said, the EPFO will have a surplus of ₹700 crore after paying out 8.5% interest.&nbsp;Now, the labour ministry requires the finance ministry&rsquo;s concurrence on the matter.
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Finance Minister Nirmala Sitharaman on Wednesday said the exercise of consolidation of 10 public sector banks into four is on course and the merger will come into effect from April 1, 2020. The mergers are aimed at creating global sized banks in India. In August, the finance ministry had announced the consolidation of 10 public sector lenders. Punjab National Bank, Oriental Bank of Commerce and United Bank will be brought together to form the second largest public sector bank in the country, after SBI. The other merger will be between Canara Bank and Syndicate Bank, which will make it the fourth-largest public sector lender, while Union Bank of India will be merged with Andhra Bank and Corporation Bank to build India&rsquo;s fifth-largest lender. In addition, Indian Bank will be merged with Allahabad Bank to make India&rsquo;s seventh-largest PSB.
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India&rsquo;s services sector growth hit an over seven-year high in February as companies reacted positively to strong demands, according to a private survey. Purchasing Managers&rsquo; Index (PMI) services rose for the fifth consecutive month to 57.5 in February after dipping to a 19-month low in September last year, according to the survey by data analytics firm IHS Markit. The reading was 55.5 in January. A figure above 50 indicates expansion, while a sub-50 print signals contraction.
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Lok Sabha&nbsp;on Wednesday&nbsp;passed&nbsp;the Direct Tax 'Vivad Se Vishwas' Bill, 2020. Finance Minister Nirmala Sitharaman had introduced the bill in February which seeks to resolve disputed tax cases involving ₹9.32 lakh crore. That&rsquo;s equivalent of 82% of the government&rsquo;s direct tax revenue in FY19. Under the scheme,&nbsp;taxpayers will have to pay 100% of the disputed tax, and the penalty and interest will be waived till March 31, 2020.

In a bid to preserve stability in the financial markets, the Reserve Bank of India on Tuesday said that it is monitoring global and domestic developments closely and is ready to take appropriate actions. The world's major powers - G7 countries, are considering a coordinated response to shield the global economy from further fallout after the last trading week ending Friday proved to be one of the worst since the 2008 global financial crises. US Treasury Secretary Steven Mnuchin and Fed Chair Powell will lead a phone call with other Group of Seven leaders later today in the evening to decide the further course of action.
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Fitch Ratings on Monday cut India's economic growth forecast to 4.9% in the current fiscal from 5.1% on weak domestic demand and supply chain disruptions due to the coronavirus outbreak. The GDP growth is forecast to recover slightly to 5.4% in 2020-21, it added. The revision comes due to disruption in the automotive and electronics supply chain from the ongoing Covid-19 outbreak in China which is expected to weigh on India's export manufacturing sector. It expected a mild pick-up in growth in the next fiscal assuming an easing of the virus spread from June.

Oil may hit 'unimaginably high numbers', stop Iran: MBS

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