There is optimism on the growth front and the expansion rate should go up to 7.5% for FY19 from the 6.6% print in FY18, German brokerage Deutsche Bank said in a report on Monday. Admitting its growth estimate is marginally higher than the 7.5% median forecast by the Reserve Bank of India’s (RBI) professional forecasters poll last week, the report said even with the higher number, growth will be lower than the potential rate. Growth slid to a three-year low of 5.7% for the June 2017 quarter due to the impact of demonetisation and implementation of GST. The report, however, did not offer a timeline for the rate hike. “The central bank is not willing to jump into a rate hike cycle in a hurry, unless inflation risks rise materially from current levels,” it said, adding the RBI will stay on hold for a longer period.

Source: Mint February 12, 2018 13:07 UTC