India's GDP growth to slow to 6.7% in fourth quarter of FY17: Nomura
Nomura has projected India's gross domestic product (GDP) to slow to 6.7% in the January to March quarter of fiscal year 2016-17 (FY17).
India's gross domestic product (GDP) growth is expected to slow to 6.7% in the January-March quarter of this fiscal year as overall activity is yet to bounce back to levels seen prior to demonetisation, says a Nomura report.
Though the adverse growth effects of demonetisation are waning, the pace of improvement is gradual and not yet broad based, the Japanese financial services major said.
"We expect GDP growth to slow from 7% in October-December 2016 to 6.7% in January-March 2017 as activity is yet to recover to levels seen prior to demonetisation," Nomura said in a research note.
ALSO READ: Moody's retains India GDP forecast, ups China's estimates
It further said, "We expect growth to bounce back to an average of 7.3% in the second half of 2017 and 7.7% in 2018."
Meanwhile, the Nomura RBI Policy Signal Index (NRPSI), that tracks the apex bank's policy decisions, rose to 0.08 in March from 0.01 in February.
"The rising positive NRPSI value suggests that the next move will likely be a hike, although it is not imminent," it said.
"A pick-up in headline CPI inflation, better global conditions (exports) and narrowing interest rate differentials (with the US) have lowered the probability of a rate cut and increased the probability of a hike," it added.
In the February 8 policy review meet, the Reserve Bank of India (RBI) kept key interest rates unchanged at 6.25% and said it is awaiting more clarity on the inflation trend and the impact of demonetisation on growth.
The next meeting of the Monetary Policy Committee (MPC) is scheduled for April 5 and 6 this year.
ALSO READ: Demonetisation: Short term pain may outweigh Indian economy's long term gains
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.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
01:43 PM IST