LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » India News

Growth recovery ahead; policy rates to be on hold in June: Nomura

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Growth recovery ahead; policy rates to be on hold in June: Nomura
Representational Image: Photo: Pixabay
Written By: PTI
Updated: Tue, May 30, 2017
02:10 pm
New Delhi, PTI
RELATED NEWS
Anarock budget wish list for realty sector: Industry status, more bank funds, ITC benefit in GST Anarock budget wish list for realty sector: Industry status, more bank funds, ITC benefit in GST
India's GDP growth rate comes in at 5.8% in Q4FY19 - Here's how various sectors performed India's GDP growth rate comes in at 5.8% in Q4FY19 - Here's how various sectors performed
Falling NPAs can give a 60-bps booster shot to GDP this fiscal Falling NPAs can give a 60-bps booster shot to GDP this fiscal
CAD widens to 2.5 pc of GDP in Q3 CAD widens to 2.5 pc of GDP in Q3
Fiscal deficit crosses 134 pc of budget estimate at Feb-end Fiscal deficit crosses 134 pc of budget estimate at Feb-end

GDP growth is expected to slow to 7.2% in January-March from 7.6% in the preceding quarter, but recovery is on the cards due to easier financial conditions, says a report.

According to Japanese financial services major Nomura, demonetisation effect is expected to slow GDP growth to 7.2% in the January-March quarter of this year (from a revised 7.6% in October-December 2016).

Nomura expects a recovery thereafter to an average of 7.5% in the second half of 2017 and 7.7% in 2018, supported by a release of pent-up consumption demand with remonetisation, easier financial conditions, pay hikes for government employees and modest external demand.

ALSO READ: How much will new IIP series impact India's GDP calculation?

"Overall, our economic heat-map indicates that the overhang from demonetisation has largely ended. Cash-intensive rural demand is recovering and external demand remains a strong tailwind," the report said.

On the monetary policy front, Nomura said: "We expect the RBI to stay on hold at its June 7 policy meeting and maintain its neutral monetary policy stance. In our base case, we expect policy rates to stay on hold throughout 2017, followed by a cumulative 50 bps of rate hikes starting in April 2018."

ALSO READ: Positive GDP number, new IIP series to put RBI under pressure, says SBI report

In April, the RBI left key policy rate unchanged at 6.25% for the third review in a row citing upside risks to inflation. It had, however, increased the reverse repo rate -- which it pays to banks for parking funds with it -- by 0.25% to 6%, narrowing the policy rate corridor.

ALSO READ: India to grow at 7.2% in 2017-18: World Bank

The report noted that notwithstanding the recent undershooting on inflation, the central bank is expected to remain cautious given the drop was largely driven by ongoing deflation in pulses and vegetable, which is transitory.

Moreover, uncertainties emanating from implementation of the Goods and Services Tax, monsoons and house rent allowance increases are also expected to weigh on inflation, it added.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Gross Domestic ProductGDPQ4 GDP dataNomuraDemonetisation impactReserve Bank of IndiaRBI Monetary policyIndian economyEconomy
RELATED NEWS
Anarock budget wish list for realty sector: Industry status, more bank funds, ITC benefit in GST Anarock budget wish list for realty sector: Industry status, more bank funds, ITC benefit in GST
India's GDP growth rate comes in at 5.8% in Q4FY19 - Here's how various sectors performed India's GDP growth rate comes in at 5.8% in Q4FY19 - Here's how various sectors performed
Falling NPAs can give a 60-bps booster shot to GDP this fiscal Falling NPAs can give a 60-bps booster shot to GDP this fiscal
CAD widens to 2.5 pc of GDP in Q3 CAD widens to 2.5 pc of GDP in Q3
Fiscal deficit crosses 134 pc of budget estimate at Feb-end Fiscal deficit crosses 134 pc of budget estimate at Feb-end

LATEST NEWS

CBSE Class 10, Class 12 exams 2021: Latest updates, inlcuding date sheet announcement, students must know

Traffic violations fine: NEVER EVER drive on wrong side of the road in this city, you may lose your driving licence permanently

Tata Power Solar wins Rs 1,200 crore order to set up 320 MW project from NTPC

HDFC Bank stock slips over 2 pc after Sebi imposes Rs 1 cr fine

Sasikala treatment under standard COVID-19 protocol, says hospital

7th Pay Commission: Don't Miss! What government employees should know about salary hike, DA release, arrears clearance

Climate change chalenges! Boeing to deliver commercial planes on sustainable fuels by 2030

Microsoft roll back Xbox Live Gold price hike after backlash from gaming community

Budget 2021 Markets Want More: In chat with Anil Singhvi, Anand Rathi Co-founder unveils this money making strategy

Important notification from HDFC Securities! Can't place any order from this date; will be back after gap on January 25

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved