Cautious RBI signals just a 25 bps rate cut
The professional forecasters have reduced their GDP growth projection to 5.5% for 2012-13 from 5.7% earlier and expect a slower recovery of 6.5% in the next year. Wholesale Price Index forecasts for the fiscal are down a bit, from 7.7% in the last round to 7.5% now. The inflation forecast for 2013-14 is 7%.
The RBI is cautious on the fiscal correction. While it acknowledges the correction, it says “sustainable consolidation would require bringing current spending, especially on subsidies, under control and protecting, if not enhancing capital expenditure”.
Be the first to comment.