Economy / India
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Macroeconomic Forecast India
August 2006 | Macroeconomic ForecastsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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BMI View: The Indian economy will remain strong in FY2006/07, with BMI forecasting growth of 8.1%, after 8.4% in FY2005/06. The moderation reflects the need for monetary tightening to combat inflation, which is expected to push towards the upper limit of the central bank's 5.0-5.5% target band over the next six months. The slowdown is expected to be mild since the central bank still has control of inflation and should only need to raise rates by another 25bps to 6.25% by the end of