RBS cuts FY10 GDP growth estimate from 9% to 8.5%
Though many are of the view that India’s wholesale price inflation can come down to 5-6% by December, RBS believes it to remain in double digits till July and says it will start easing off only from August. “We may not see foodinflation coming down till this year-end,” he adds.
Further commenting on the industrial production numbers for the month of May, RBS says it won’t alter estimates by big margins. “But we are cutting FY10 GDP growth estimate from 9% to 8.5%,” he states.
Going with the market expectation of a 25 basis points hike in rates by the Reserve Bank of India (RBI) in its July 27 policy review, a top official of RBS says he sees a further hike of 50 bps in 2010.
Source:- Moneycontrol
