Reserve Bank of India chose not to cut its repo rate in December to combat the fallout from the demonetisation, keeping it steady at 6.25%. Having posted growth of above 7% for six consecutive quarters, India’s gross domestic product is expected to have expanded just 6.5% in the October-December quarter—the weakest in nearly three years. The poll also suggested growth would remain below 7% in the first quarter of 2017, at 6.9%. India’s GDP for the fiscal year to March 2017 is expected to grow 6.9%, according to the poll of over 20 economists. It is expected to hover between 4.1 and 5.2% from now to mid-2018, giving the RBI room to make further rate cuts.

Source: Mint January 18, 2017 07:10 UTC