Red-Hot Industry Reinforces Rate ViewFebruary 2010 | Economic Analysis
BMI View: Indian industry is on fire, with output growth posting a remarkable 16.8% y-o-y in December 2009, the fastest rate of expansion in two decades. While base effects and seasonal factors have played a part, upside risks to our FY2009/10 (April-March) real GDP forecast of 7.0% are building. Moreover, the threat of further inflationary pressure could tempt the Reserve Bank of India (RBI) to deliver an inter-meeting repo rate hike before it next convenes on April 20, in line with our expectations.
To read the full article, please choose one of the following options: