CS expects a mammoth rate cut in India

Agencies

Posted: Friday, Jan 06, 2012 at 1732 hrs IST

Singapore: Interest rates in India may be cut by as much as 125 basis points during the 2012-13 financial year, thanks to lower inflation below 7 per cent, Credit Suisse Ag said in its latest forecast made here today.

"We are looking at the first rate reduction of 25 basis points by April and a total of 125 basis points reduction in repo rates during fiscal 2012-13," bank director Robert Prior-Wandesforde told reporters at the bank's 2012 Global Outlook Media Roundtable held in Singapore today.

Prior-Wandesforde also said India's annual economic growth rate would be sub-7 per cent for the 2012-13 fiscal, given softening global trade, though the US economy was showing signs of a recovery.

"But the good news is the lowering of inflation rate, which would be sub-7 per cent for the 2012-13 financial year," he said.

Interest rates rose far more than expected last year and have peaked.

"Now we are seeing the...

Source: http://financialexpress.com/news/cs-expects-a-mammoth-rate-cut-in-india/896644/

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