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
Business News » India News

Morgan Stanley cuts CPI forecast on benign GST, monsoon impact

Morgan Stanley Research has revised the headline CPI forecast for calender year 2017 to 3.1% from 3.6% earlier and for 2018 to 4.3% from 4.6% earlier.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Morgan Stanley cuts CPI forecast on benign GST, monsoon impact
Shoppers rush at a supermarket after Goods and Services Tax (GST) roll out in New Delhi. Photo: IANS
Written By: PTI
Updated: Sun, Jul 30, 2017
11:32 am
New Delhi, PTI
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Expert views: October retail inflation remained over 7% for second straight month Expert views: October retail inflation remained over 7% for second straight month
After potato and onion, edible oil prices rise After potato and onion, edible oil prices rise
'Economic disruption to deter RBI from quantifying FY21 growth forecast' 'Economic disruption to deter RBI from quantifying FY21 growth forecast'
February retail inflation eases to Retail 6.58 pct; IIP sees a 2 pct on year growth February retail inflation eases to Retail 6.58 pct; IIP sees a 2 pct on year growth

Global brokerage firm Morgan Stanley has lowered its inflation forecast for 2017 to 3.1% from 3.6% earlier citing relatively benign outcomes of GST and monsoon.

It however said headline inflation troughed in June and the trajectory is still that of a gradual rise in headline inflation.

Morgan Stanley Research has revised the headline CPI forecast for calender year 2017 to 3.1% from 3.6% earlier and for 2018 to 4.3% from 4.6% earlier.

For the ongoing fiscal, it expects headline CPI at 3.2% from (4% earlier) and for 2018-19 to 4.3% from 4.5 previously.

Two factors led to the revision of forecast - first, the slippage in food inflation year-on-year has been more persistent and secondly, the impact of GST, rise in house rent allowance (HRA) and the ongoing monsoon on inflation was benign, it said.

"We expect that headline inflation troughed in June and that sequential rises in food inflation and the fading of high bases of comparison will mean that food and, by extension headline CPI inflation, will gradually increase from here," it said.

Retail inflation hit a historically low level of 1.54% in June on dip in prices of food items like vegetables, pulses and milk products.

Regarding RBI's monetary policy stance, the report said recent slippage in inflation has opened up room for one more rate cut. "It is in this context that we expect RBI to take up one more rate cut at the August meeting," it said.

Beyond the likely August rate cut, Morgan Stanley does not expect any further material easing of monetary policy in its base case.

In its June monetary policy review, RBI left key rates unchanged with Governor Urjit Patel noting that the central bank wanted to be more sure that inflation will stay subdued.

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:
InflationCPI InflationMorgan Stanleyinflation forecastMorgan Stanley on Indian inflationGSTGoods and Services taxGST BillGST bill latest newsEconomyReserve Bank of IndiaRBIRepo Rate CutRBI Inflation targetUrjit Patelmonsoon
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Expert views: October retail inflation remained over 7% for second straight month Expert views: October retail inflation remained over 7% for second straight month
After potato and onion, edible oil prices rise After potato and onion, edible oil prices rise
'Economic disruption to deter RBI from quantifying FY21 growth forecast' 'Economic disruption to deter RBI from quantifying FY21 growth forecast'
February retail inflation eases to Retail 6.58 pct; IIP sees a 2 pct on year growth February retail inflation eases to Retail 6.58 pct; IIP sees a 2 pct on year growth

LATEST NEWS

ICICI Bank credit card, debit card holders delight! Get discount up to 50% on essential and luxury items | check details

Citi on Mutual Funds: UTI AMC is top pick; sector may deliver Healthy (15%) AUM / profit growth likely

Samsung Galaxy 21, Galaxy S21+ and Galaxy S21 Ultra launched | Check Price, Camera, Specifications, Pre-booking and Cashback offers

Exclusive: Tread with caution in 2021, expert Mehraboon Irani tells investors; reveals his favourate stocks, budget expectations to Anil Singhvi

Cinderella of the job world offer! Wear slippers, get paid Rs 4 lakh - This company has 2 vacancies for Slipper Tester

RULES CHANGED! From today, you can't make a phone call without following this rule

HDFC Securities highlights that 14563 and 14256 is the resistance / support for the Nifty in the near term

Mutual Fund NFO: PGIM India Balanced Advantage Fund launched; minimum investment Rs 5000; know last date of offer

Indigo Paints: Ambit highlights key takeaways from the Analyst meet

Anil Singhvi reveals when to apply buying strategy in falling markets | Know all about 2:30 factor

  • 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