The Reserve Bank cut it's GDP growth forecast to 5% from it's previous estimate of 6.1% for FY20. Growth targets for the second half were also lowered to 4.9-5.5%. The MPC noted that economic activity has weakened further and a delay in domestic demand revival is a downside risk for GDP growth. What is worrying is that the RBI raised the inflation forecast for the second half of the year to between 5.1-4.7%. The MPC said the inflation outlook is likely to be influenced by several factors and expectations for both 1 year and 3 month inflation had risen sharply because of high vegetable and pulses prices.