Indian economy, inflation may surprise on the upside: Credit Suisse
PTI: Mumbai, Jan 23 2013, 21:34 IST
said RBI's post-policy review statements of October 30 and December 18 signal a change in its hawkish tune, which in turn has reignited the debate concerning the likely scale of policy rate reductions to come.
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.
Previous Story Barclays may move hundreds of jobs to India: Report Next Story Birla Sun Life launches BSLI Vision LifeIncome
Reader's Comments| Post a Comment
Be the first to comment.
