Moody’s says India’s growth to be ‘near-trend’ in 2019; RBI to further tighten rates

By: | Published: November 6, 2018 4:54 PM

Even though trade and currency wars are slowing down the global growth engine, emerging markets such as India and Indonesia are likely to grow near-trend in 2019, a global rating agency said.

Moody’s also said that the RBI monetary policy committee will continue to tighten interest rates in the year 2019.

Even though trade and currency wars are slowing down global growth engine, emerging markets such as India and Indonesia are likely to grow near-trend in 2019, a global rating agency said. The global and domestic headwinds such as rupee fall, widening CAD and balance of payment troubles may not be able to slow down India’s growth trajectory in the year to come, PTI reported citing Moody’s Investors Service report.

Moody’s also said that the RBI monetary policy committee will continue to tighten interest rates in the year 2019. In June and August, the central bank has hiked rates by 0.50 percent before surprising with a status quo at the last outing. Other markets, including  Indonesia, Brazil, Turkey and Argentina, will also see monetary tightening, Moody’s said.

Also read: Share market LIVE UPDATES: Sensex ends below 35,000, Nifty below 10,550; SBI, Axis Bank shares tank 4%

In the June quarter of the ongoing fiscal, the GDP growth rose to 8.2 percent after reporting a 6.7 percent expansion in last fiscal. Moody’s said that India is among the list of countries facing the most severe currency depreciation with the rupee falling about 15 percent till date.

In the recent years, Moody’s is one of the few rating agencies to have upgraded India in the recent years. India holds a ‘Baa2’ rating with a stable outlook currently.

Meanwhile, the 30-share Sensex ended the day today 41 points higher at 34,991.91, while the broader Nifty 50 ended below the psychological 10,500-mark.

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