S&P Global Ratings: Global rating agency S&P Global Ratings (S&P Global Ratings) The RBI has maintained the Indian GDP growth forecast for the financial year 2024-25 at 6.8 percent. It has also said that the Reserve Bank of India (RBI) may cut interest rates in October.
The rating agency said for the Asia-Pacific region that India’s GDP will grow at the rate of 6.9 percent in the financial year 2025-26.
India’s strong growth rate will help RBI in managing inflation. The report said that in the July budget, the Indian government has made it clear that it is committed to fiscal consolidation.
Inflation has fallen below RBI’s target of 4 percent
Also, spending on infrastructure will continue. In the budget for the financial year 2024-25, Finance Minister Nirmala Sitharaman allocated a fund of Rs 11.11 lakh crore for capital expenditure. At the same time, the fiscal deficit target for the financial year 2025-26 has been reduced to 4.5 percent.
The report said that inflation has come down below RBI’s target of 4 percent. After this, RBI may reduce interest rates in the MPC meeting to be held in October.
We expect interest rates to be cut twice in the current financial year. The Global Rating Agency has lowered China’s growth forecast for 2024 from 4.8 percent to 4.6 percent.
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