S&P retains India's FY25 growth forecast at 6.8%; sees rate cut in Oct

25 Sep '24

1 min read

S&P retains India's FY25 growth forecast at 6.8%; sees rate cut in Oct

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Noting that strong growth would help India's central bank tackle inflation, S&P Global Ratings recently maintained the country's growth forecast for FY25 at 6.8 per cent and for FY26 at 6.9 per cent.
It will be tough to maintain headline inflation at 4 per cent unless there is a lasting and meaningful drop in food price rise, it said.
It estimated inflation to average 4.5 per cent this fiscal.

Noting that strong growth would help India’s central bank tackle inflation, S&P Global Ratings recently maintained the country’s growth forecast for fiscal 2024-25 (FY25) at 6.8 per cent and for FY26 at 6.9 per cent.

It will be tough to maintain headline inflation at 4 per cent unless there is a lasting and meaningful drop in food price rise, it said. It estimated inflation to average 4.5 per cent in this fiscal.

The Reserve Bank of India (RBI) may cut interest rates in October, it said in its economic outlook for the Asia-Pacific region.

India's economic growth rate was 8.2 per cent in FY24.

The central bank’s interest rate-setting monetary policy committee is set to meet on October 7-9. It has held the benchmark interest rate steady at 6.5 per cent since February 2023 to control inflation.

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