Thursday 9 August 2012

Moody's Analytics cuts India's 2012 growth f'cast


Moody's Analytics cuts India's 2012 growth f'cast

Moody's Analytics cut India's growth forecast to 5.5% for this year, citing a lack of government or RBI action despite a broad-based slowdown, as well as a poor monsoon.
The research unit of ratings agency Moody's Investors Service becomes the latest to cut India's growth forecasts this week.

CLSA and Citigroup cut their outlooks for India to 5.4% and 5.5%, respectively, although for the fiscal year ending in March 2013.

Moody's said the slowdown in India's economy "has been sharper and more broad-based than anticipated and is now deeply entrenched across all sectors of the economy," in a note dated August 8.

Despite the slowing growth, Moody's said both the government and the Reserve Bank of India had provided "little policy response."

Moody's added weaker-than-average rainfalls during the monsoon period would also weigh on India's growth. The research unit also cut its 2013 growth forecast to 6 % from 6.2%.

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