Morgan Stanley and Bank of America Merill Lynch have revised downwards their growth estimate for India in the post demonetized economy. Morgan Stanley, quoted by Cogencis, has cut India's GDP growth estimate to 7.4% from 7.7% for 2016. InflationUnder the inflation target regime, the RBI had set a target of 5% inflation by March 2017. Morgan Stanley said inflation would be below 4.5% by March-end. Upcoming monetary policy reviewIn the aftermath of the demonetization move, Morgan Stanley said that it expected RBI to cut the repo rate by 25-50bps by March-end.

Source: dna November 28, 2016 07:00 UTC