RBI May  Hold Rates
World Economy

RBI May Hold Rates

Indian economy is expected to clock a growth of 7.4% this fiscal, and on the policy front, the Reserve Bank is likely to leave key rates unchanged at its August meet, says a UBS report. According to the Swiss financial services major, slowdown in real GDP growth in 2016-17 is likely and it expects growth of around 7.4% in 2016-17 after the 7.6% recorded in 2015-16, DNA reported. “The disinflationary effect of balance sheet repair is depressing economic activity towards a more sustainable path while external pressures are likely to depress the economy. On a more positive note, healthier balance sheets should set the stage for a growth recovery in 2017-18,” it added. On policy rates, it called upon RBI to factor in higher-than-expected May and June CPI inflation and the impact of partial implementation of the Seventh Pay Commission award. UBS expects the 2017-18 CPI forecast at 4.5%, from the previously estimated 4.2%.

Short URL : http://goo.gl/s3isw9
  1. http://goo.gl/xnKbZI
  • http://goo.gl/J2E57K
  • http://goo.gl/zrmg7Y
  • http://goo.gl/wmxLk3
  • http://goo.gl/t6P06V

You can also read ...

Indonesia’s interest rate rise highlights need for urgent defensive action.
Argentina's return to financial chaos might seem remote to...
Kazakhstan Doing Better Than 5 Central Asian Peers
Despite starting from similar points upon the collapse of the...
Pakistan Retains Stable Rating
Moody’s Investors Service said that Pakistan’s (B3 stable)...
Goldman Says US in Dire Straits
Goldman Sachs’ analysts delivered a weekend note on the United...
Taiwan Economic Sentiment Weakens
Sentiment toward Taiwan’s economy weakened in May after the...
Bruno Le Maire
The stability of the eurozone will be at stake if a populist...
Investments by state enterprise rose 11.5% from a year earlier.
Thailand produced its fastest economic growth in five years in...
Chan Chun Sing (L) and CEO of the Singapore Business Federation Ho Meng Kit,  at The Business Times Leaders Forum on Monday.
With the rise in unilateralism and protectionism, the...