Delay in Covid-19 vaccine distribution may impact GDP growth prospects in FY22: BofA

by Nidhi Bhati

BofA Securities expects GDP growth at nine per cent in 2021-22 if the vaccine distribution is done during April-September 2021. However, it said that a delay in Covid-19 vaccine distribution could impact GDP growth prospects in the next fiscal year. The growth may just be restricted at six per cent if the distribution is deferred to the second half of the current fiscal. For the current financial year, BofA expects GDP to contract by 6.7 per cent. It further stated that the Reserve Bank of India (RBI) may slash policy rates by 50 basis points by June 2021 as inflation cools down.