Press Esc to close
Saturday 04 July 2015
News updated at 4:52 PM IST
Weather
Max: 33°C
Min : 21°C
In Bengaluru
Rain lightly

BarCap expects bigger rate cuts in India in 2013

May 21, 2013 , Reuters Market Eye -
Reuters Image

Barclays Capital now expects another 75 bps of rate cuts over the rest of 2013 versus its previous call of 25 bps in easing due to slowing inflation and weakening economic growth.

BarCap says in a note it sticks to its call the RBI will cut interest rates by 25 bps in June, but expects 50 bps in additional cuts over the rest of 2013.

The investment bank also marginally lowers its current fiscal year GDP forecast to 6 percent from 6.2 percent to reflect recent disappointment in economic activity.

Further rate cuts and lower inflation are likely to encourage portfolio inflows to Indian assets and support the rupee in the near term, says the note, forecasting USD/INR to fall to 53.50 in the coming months.

BarCap also stays bullish on India government bonds.


Go to Top

Photo Gallery
India and Bangladesh basketball players in action during the 4th South Asian Basketball...

India and Bangladesh basketball players in action during the 4th South Asian Basketball...

A farmer works in a paddy field at Reba Maheswar village, 56 kilometers (35 miles) east of Gauhati..

A farmer works in a paddy field at Reba Maheswar village, 56 kilometers (35 miles) east of Gauhati..

A tiger attacking spotted deers at Nagarahole National Park in Mysore district on Friday...

A tiger attacking spotted deers at Nagarahole National Park in Mysore district on Friday...

Monsoon rain clouds hover over the backdrop of Kitthur Rani Chennamma statue near Town Hall...

Monsoon rain clouds hover over the backdrop of Kitthur Rani Chennamma statue near Town Hall...

Protesters run for cover after police fired teargas shell to disperse them during a clash...

Protesters run for cover after police fired teargas shell to disperse them during a clash...

A gust of wind bends the umbrella of a street vendor crossing the road during a heavy downpour...

A gust of wind bends the umbrella of a street vendor crossing the road during a heavy downpour...

Indian Muslims offer prayers during Ramadan at the Vasi Ullah mosque in Allahabad...

Indian Muslims offer prayers during Ramadan at the Vasi Ullah mosque in Allahabad...

Buddhist monks from Thailand offer special prayers for making a new Temple...

Buddhist monks from Thailand offer special prayers for making a new Temple...

A worker drying up vermicelli at a factory in Allahabad on Friday during Ramadan...

A worker drying up vermicelli at a factory in Allahabad on Friday during Ramadan...

Bollywood actors Amit Sadh, Aditi Rao Hydari and Arshad Warsi at the launch of a new multiplex...

Bollywood actors Amit Sadh, Aditi Rao Hydari and Arshad Warsi at the launch of a new multiplex...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523