NEW DELHI: India's industrial growth and inflation may trend up as key metrics such as IIP, CPI and WPI are expected to come in higher, driven by a waning GST impact and higher commodity rates, says a Morgan Stanley report. According to the global financial services major, August industrial production (IIP) may improve as GST-related impact would wane. Following the uptrend in inflation, Morgan Stanley said "rising inflation trajectory will mean that the central bank will keep rates on hold". RBI in its policy review meet on October 4, kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7 per cent for the current fiscal. Regarding IIP, the report said the index is expected to rise to 1.7 per cent in August, supported by a favourable base.

Source: Economic Times October 11, 2017 08:03 UTC