New Delhi : Rating agency S&P Ratings has released its report on India's Gross Domestic Product (GDP). Based on this report, it has been found that India's growth figure for the current financial year 2024-25 can be up to 6.8 percent, which remains the same as the earlier figures. This rating agency has also expressed hope that India's central bank i.e. RBI will also
The government may start reducing interest rates in the monetary policy review of the month of October.
In the economic scenario of Asia Pacific, S&P Global Ratings has maintained its GDP growth forecast for the financial year 2025-26 at 6.9 percent. It said that solid growth in India will enable the Reserve Bank of India (RBI) to focus on bringing inflation in line with its target. The rating agency said, “High interest rates in India in the April-June quarter affected urban demand and GDP growth remained slow. However, it is in line with our GDP forecast of 6.8 percent for the entire financial year 2024-25.”
plan to cut interest rates
In the previous financial year 2023-24, the Indian economy grew at a rate of 8.2 percent. S&P said, “Our scenario remains the same. We expect the RBI to start cutting rates in October at the earliest and plan to cut rates twice in the current financial year (ending in March 2025).”
Monetary Policy Committee Meeting
S&P estimates that inflation will average 4.5 percent in the current financial year. The government has given the RBI the target of keeping inflation at four percent with a variation of two percent on either side. The Monetary Policy Committee, which sets the interest rate of the RBI, is scheduled to meet from October 7 to 9. To keep inflation under control, the central bank has kept the policy rate unchanged at 6.5 percent since February 2023. The US central bank Federal Reserve has also cut its policy interest rate by 0.50 percent. After this, the RBI is expected to cut it by 0.25 percent next month.
(With agency input)
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