The unexpected strength of April industrial output adds to the evidence that India’s slowdown has passed its worst point. GDP growth should accelerate during the rest of 2009. Weak inflation pressures mean that policy rates could still fall further but it is more likely that Reserve Bank rates have bottomed. We now expect that the next RBI move will be to raise rates, either in Q4 2009 or in early 2010.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services