Global financial services firm Citigroup on Thursday said that the Reserve Bank should now perk up the economy by further easing money supply.
"With incremental macro data likely to remain weak, limited fiscal maneuverability and benign wholesale inflation, we maintain our view that the onus of stemming the deceleration in growth will remain on monetary policy," the firm said in its Global Economic Outlook and Strategy report.
The firm expects an additional 100 to 150 basis points of easing by the Reserve Bank.
The Reserve Bank of India on Monday assured that it was closely monitoring the economic scenario and would take "appropriate policy action as may be necessary".
The RBI Governor Duwuri Subbarao on Sunday met Finance Minister Pranab Mukherjee and "assured him that the Reserve Bank is constantly monitoring the situation."
Meanwhile, Citigroup also pegged the economic growth of the country in the next fiscal to drop to 5.5 per cent against the expectations of 6.8 per cent by the government.
This forecast, it said factors in a contraction in exports, a further deceleration in investment growth and a moderation in consum.