简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract: India’s strong growth offers room for the Reserve Bank of India to raise rates by another 60 basis points as the central bank seeks to stamp out high inflation, DBS Group Research said in a note on Thursday.
Favourable base effect after the onset of Delta coronavirus variant last year will additionally lift the year-on-year GDP numbers, Radhika Rao, senior economist at DBS Group Research, wrote in the note.
“Resumption in service sector activity added to the momentum, besides manufacturing,” Rao said. The research houses fiscal year 2022-2023 GDP growth forecast of 7% year-on-year will see India emerge the fastest-growing economy in Asia this year, she pointed out.
Broad-based improvement in vaccination rates and relaxation of lockdowns benefited urban consumption, while unemployment rates returned to pre-pandemic levels, Rao said. On the investment side, “lead indicators have been encouraging.”
“Resilient growth provides the room for RBI to prioritise inflation,” she said. She expects RBI to raise rates by another 60 bps in the current fiscal year, adding to the 140 bps already done.
India‘s retail inflation rate has remained above RBI’s upper tolerance limit for seven straight months.
“Our call is for a 35 basis points hike in September, followed by another 25 basis points in December to take the repo rate to 6.0%, before settling into an extended pause.”
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
A recent allegation against STP Trading has cast doubt on the firm's business practices, highlighting the potential risks faced by retail traders in an increasingly crowded and competitive market.
Cross-border payments are now faster, cheaper, and simpler! Explore fintech, blockchain, and smart solutions to overcome costs, delays, and global payment hurdles.
4 Days Left
The UK Financial Conduct Authority (FCA) has issued a public warning regarding a fraudulent entity impersonating Admiral Markets, a legitimate and authorised trading firm. The clone firm, operating under the name Admiral EU Brokers and the domain Admiraleubrokerz.com, has been falsely presenting itself as an FCA-authorised business.