MUMBAI: Fitch expects the Indian economy to slow down and said in a statement late on Wednesday it will cut the country’s GDP growth forecast for the current fiscal year through March 2023 from 7.8% to 7%. will do it.
It forecast a further slowdown in growth in FY24 to 6.7% from its earlier estimate of 7.4%.
“We expect the economy to slow down, given the global economic backdrop, high inflation and tight monetary policy,” the rating agency said.
“Inflation moderated in August as crude oil prices eased, but food inflation risks remain in view of the negative weather later this year,” he said.
As the central bank has said that its future rate decisions will be calibrated, measured and agile based on economic dynamics, Fitch said it expects policy rates to peak in the near future and remain at 6% until next year .
It forecast a further slowdown in growth in FY24 to 6.7% from its earlier estimate of 7.4%.
“We expect the economy to slow down, given the global economic backdrop, high inflation and tight monetary policy,” the rating agency said.
“Inflation moderated in August as crude oil prices eased, but food inflation risks remain in view of the negative weather later this year,” he said.
As the central bank has said that its future rate decisions will be calibrated, measured and agile based on economic dynamics, Fitch said it expects policy rates to peak in the near future and remain at 6% until next year .