GDP growth rate at 2 year low; RBIs action in next policy will be keenly watched
Indias GDP data for Q4FY17 dropped to a two year low. Now the next trigger would be RBIs action on Indian economy during second monetary policy meet.
Q4FY17 data of India's gross domestic products (GDP) came in as a shock to many analysts as it has unexpectedly plunged to a two year low.
On May 31, 2017, the Central Statistics Office (CSO) announced that India's GDP between January – March 2017 period stood at 6.1% compared to 7% in Q3FY17.
This figure is lowest since December quarter ended in 2014 – when GDP recorded growth of just 6%. Even the current performance of India's GDP is lower than China's growth of 6.9% during Q4FY17.
tradingeconomics.comSBI for FY18 expect CPI inflation to average below 4% with a significant downward bias.
Thus in July policy, SBI expects RBI to maintain the neutral stance but possibly change its perception on inflation to balanced or even downside.
Additionally a widening of the corridor or a signal on the SDF will be a well thought and pragmatic move to push the yields down and ensure monetary policy transmission against the backdrop of significant liquidity overhang in the system, added SBI.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.