RBI-Government Feud In Fitch Report As India Growth Forecast Is Slashed

Amandeep Singh Posted into Buzz 0 views
December 07, 2018
RBI-Government Feud In Fitch Report As India Growth Forecast Is Slashed
Economic growth may become a casualty of the tug-of-war between the government and the central bank. Fitch Ratings lowered its 2018 growth forecast for Asia\'s third-largest economy to 7.2 per cent from 7.8 per cent seen previously. The financial year runs from April to March. The forecast cut comes in the midst of a power struggle between the Reserve Bank of India and the government, after the finance ministry pushed to have a greater say over the RBI\'s functioning. "So far, the Reserve Bank of India has dismissed calls by the government to provide emergency liquidity and to ease lending restrictions," the rating company said in its latest Global Economic Outlook. Higher financing costs and reduced credit availability contributed to the lowering of the forecast, it said. The central bank retained its full-year growth forecast at 7.4 per cent on Wednesday and kept rates unchanged. Gross domestic product growth for the next year is seen at 7 per cent, Fitch said in the report. The sharp revision comes after growth in the latest quarter unexpectedly weakened to 7.1 per cent following back-to-back interest rate hikes, a funding squeeze and subdued expansion in the farm sector. India is among the 11 countries that saw a cut in their growth projections due to tighter financing conditions. The external sector was also a significant drag on overall gross domestic product amid steadily accelerating imports, Fitch said about India -- the country it rates in the lowest investment grade. "Interest rates in India, Mexico, Indonesia and, most dramatically, Turkey are all much higher than we anticipated this time last year, and central banks in Indonesia, Mexico and South Africa have all surprised on the hawkish side since September," the report said.
{a comments.length a} Comments
RBI-Government Feud In Fitch Report As India Growth...
Recommended Post
12-09-2018 Navin posted a Buzz
Related Post
Difference Between Social Media and Social Networking ( 1043 Views) Disha Patani: Latest Trending Instagram Pics ( 836 Views) Five Ways to fix PUBG Lag ( 527 Views) Bollywood actresses embarrassing wardrobe malfunctions ( 460 Views) Bollywood Hollywood Tollywood Movies At One Place ( 422 Views) 15 Unseen Photos of Alia Bhatt before coming to the movies ( 397 Views) Meet the new co-host in Family Time With Kapil ( 301 Views) 13 Raksha Bandhan 2018 Gifts for your sister ( 287 Views) केरल ने बाढ़ के लिए तमिलनाडु को ठहराया जिम्मेदार, मुल्लापेरियार बांध से अचानक पानी छोड़ने को बताया प ( 283 Views) Rahul Gandhi is my captain, he sent me to Pakistan: Sidhu ( 266 Views)
Please Login to react !!!