FXStreet (Mumbai) – International ratings agency Moody’s on Tuesday lowered India’s growth forecast to for 2015, citing weather concerns and further risks growing from the slow pace of reforms.
Key Quotes:
“We have revised our GDP growth forecast down to around 7% (7.5% projected earlier), in light of a drier than average monsoon although rainfall was not as low as feared at the start of the season,”
“One main risk to our forecast is that the pace of reforms slows significantly as consensus behind the need for reform weakens once the least controversial aspects of the government’s plan have been implemented,”
“Barring a large shock to commodity prices or food inflation, we think that the central bank’s inflation targets are achievable,”
“Maintaining inflation at lower levels than in the past will support real incomes and spending. As long as the central bank’s objective is credible, it will also foster investment by providing more visibility about future revenue growth and margins.”
(Market News Provided by FXstreet)