Domestic consumption continues to moderate. Private services activity too has decelerated with lower PMI, CV sales, tourist arrivals and rail freight. A normal monsoon and rural stimulus (PM-KISAN) will favour a pick-up in domestic demand in H2. With Centre looking at maintaining its fiscal deficit at 3.4%, states may have to step-up spending in FY20. The recent decline in oil prices, change in RBI's stance to accommodative and lower global yields is positive for interest rates. For transmission, liquidity in the banking system has to increase and will improve only gradually....