Indian economy, inflation may surprise on the upside: Credit Suisse
Stating that it view has been and remains the most dovish of all, the report said, "we are looking for a total of 125 bps of repo rate cuts this year, with 50 bps on January 29, a further 50 bps in April and a final 25 bps in July."
On the possibility of the rating agencies downgrading the country's rating to junk or sub-investment grade this year, the brokerage said "if our assumptions are reasonably accurate, the chances of two of the three main rating agencies junking India by end-2013 is small, with the likelihood being just about 15-20 per cent.
It also said that Fitch appears to be close to pulling the trigger but it seems is waiting for the Budget before deciding whether to do so.
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