Indian economy to slowdown in coming months, says Nomura report
Nomura expects GDP growth to peak in the April-June quarter and then moderate to 7.2 per cent in the second half of 2018 from around 7.8 per cent in the first half.
"Our proprietary indicators suggest the inflexion point for the cyclical recovery may just be around the corner," Nomura said in a research note.
India's gross domestic product (GDP) grew at the fastest pace in seven quarters at 7.7 per cent in January-March quarter on robust performance by manufacturing and service sectors as well as good farm output.
"For now, strong core momentum, sticky global oil prices and higher minimum support prices suggest conditions are ripe for another 25 bp rate hike in August. We expect a long pause on policy rates thereafter as growth and inflation slow," Nomura said.
In June, the Reserve Bank of India had upped its retail inflation projection by 0.30 per cent and kept the policy stance in the neutral zone, even as it hiked the key rate by 0.25 per cent to 6.25 per cent.
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