The report, however, admitted that 10 of these top 15 districts are major cities and among them Bengaluru and Pune still have higher infection rates.
By no means do economists see the Reserve Bank of India stop at just a 25-bp cut. Some of the economists such as Soumyakanti Ghosh of State Bank of India are of the firm view that rates have room to fall by a total of 75 bps in the current financial year, starting with 25 bps in the August 7 policy.
SBI Research has projected the Indian economy to grow at 7.5 per cent in 2022-23, an upward revision of 20 basis points from its earlier estimate. As per official data, the economy grew by 8.7 per cent in FY22, net adding Rs 11.8 lakh crore in the year to Rs 147 lakh crore, the report said, adding this was however only 1.5 per cent higher than the pre-pandemic year of FY20. "Given the high inflation and the subsequent upcoming rate hikes, we believe that real GDP will incrementally increase by Rs 11.1 lakh crore in FY23. "This still translates into a real GDP growth of 7.5 per cent for FY23, up by 20 basis points over our previous forecast," SBI chief economist Soumyakanti Ghosh said in a note on Thursday.
The rupee has depreciated 10.5 per cent against the dollar this year, making it Asia's worst-performing currency.
At least a 25 basis points hike can be expected on the October 5 policy
The main reason was that CPI inflation would likely remain below 4 per cent till July.
State Bank of India's house economists on Monday said the recent farm sector reforms reek of parochial thinking and promote lazy farming as they only cater to cereal-producing states. In the recently concluded monsoon session, the government rushed through three legislation to change the way agricultural produce is marketed, sold and stored by dismantling the decades-old APMC (Agricultural Produce Market Committee) mandis.
Central bank moves to infuse liquidity into bond market to help boost sentiment.
There is a near consensus that at least a 25 basis points cut, if not 50, can be expected in the June policy.
Thanks to Rajan we are an inflation-targeting country now
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