BofA-ML cuts India's FY14 GDP forecast to 5.5 percent
MUMBAI (Reuters) - Bank of America-Merrill Lynch cut India's fiscal year 2013/14 growth forecast to 5.5 percent of the gross domestic product from 5.8 percent after the central bank took steps to curb rupee liquidity, it said in a note on Tuesday.
The Reserve Bank of India announced measures late on Monday to curb the rupee's decline by tightening liquidity and making it costlier for banks to access funds from the central bank.
The investment bank said the tightening will push back lending rate cuts.
"We had earlier expected growth to stage a shallow recovery to 5.8 percent on the back of better rains and lending rate cuts. We have now removed the 30 basis points we had expected from softer rates," wrote analysts at the bank. (Reporting by Swati Bhat; Editing by Prateek Chatterjee)
- Tweet this
- Share this
- Digg this
- China's Xiaomi hopes Mi 4 smartphone can take on Apple
- Rebels likely downed Malaysian jet 'by mistake' - U.S. officials
- Nifty hits record high on foreign buying, higher Asian stocks
- Jet Airways chairman says looking to restructure debts, talking to bankers
- Italy gives Google 18 months to change data use practices
The Nifty rose to a record high on Wednesday, led by gains in blue-chips such as ICICI Bank on continued foreign-investor buying, while higher Asian shares also helped sentiment. Full Article
Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs Full Article
Jet Airways chairman says looking to restructure debts, talking to bankers Full Article
Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec Full Article
Supreme Court could allow Sahara boss to conduct asset sale talks, company says. Full Article
Five held in China food scandal probe, including head of Shanghai Husi Food Full Article