The MPC noted that since its meeting in early December 2019, global economic activity has remained subdued. However, some variations in macroeconomic performance are becoming evident among major economies. In the United States, pace of growth has been broadly maintained in the second half of 2019.

But in the Euro area, the United Kingdom and in Japan, economic activity has slowed down in Q4. Among emerging market economies, the Chinese economy decelerated to a 29-year low in 2019 while a loss of momentum was manifest in Russia, Brazil and South Africa. Crude oil prices have softened from mid-January with a sharp fall towards the end of the month triggered by the outbreak of the coronavirus.

With international food prices rising on higher demand and supply disruptions, inflation has edged up in some major advanced economies and EMEs. Global financial markets remained resilient in December 2019 and January 2020 as thawing US-China trade relations and improved prospects of an orderly Brexit buoyed investors' sentiments. Turning to the Indian economy, the first advanced estimates released by the National Statistical Offi