• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Tightening financial conditions to impact India's growth: CRISIL

20 Jan '23
1 min read
Pic: Shutterstock
Pic: Shutterstock

India’s financial conditions are forecast to remain tight in 2023, despite central banks expected to slow their pace of rate hikes, according to CRISIL ratings. The Fed policy rate is estimated to peak at 5-5.25 per cent in April-June 2023. With the Fed’s policy rate remaining higher than in the past decade, global financial conditions will also tighten and maintain pressure on capital flows.

The real repo rate will be on a rising trend, as inflation continues to moderate. Meanwhile, the RBI is expected to remain wary of easing its policy stance in its upcoming policy meeting, given that core inflation remains sticky. Liquidity conditions will also not return to surplus as seen in the pandemic years, which will maintain fundamental pressure on domestic interest rates, as per CRISIL.

Borrowing costs for the broader economy will continue to rise, given the pending transmission of the RBI’s rate hikes. This is likely to have some impact on the growth prospects of the Indian economy in the next fiscal as well.

Fibre2Fashion News Desk (DP)

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search