S&P Global Ratings retains India's growth forecast at 6.8% for current fiscal
The rating agency is expecting the RBI to start cutting interest rates in its October monetary policy review
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Credit rating agency, S&P Global Ratings in its latest report ‘the economic outlook of Asia Pacific’ has retained India's growth forecast at 6.8 per cent for the current fiscal and for the fiscal 2025-26 at 6.9 per cent. The rating agency is expecting the RBI to start cutting interest rates in its October monetary policy review. According to it, solid growth in India will allow the Reserve Bank of India (RBI) to focus on bringing inflation in line with its target.
S&P said the RBI considers food inflation a hurdle for rate cuts. It reckons that unless there is a lasting and meaningful decline in the rate at which food prices are increasing it will be tough to maintain headline inflation at 4 per cent. The rating agency is expecting inflation to average 4.5 per cent in the current fiscal.
Meanwhile, the Indian economy grew 8.2 per cent in the last fiscal, while the RBI's interest rate-setting monetary policy committee is set to meet on October 7-9. The central bank has held the benchmark interest rate steady at 6.5 per cent since February 2023 to keep inflation under check.