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Indian GDP growth slows to 18 month low of 7.7pc
INDIA’S growth slowed to its weakest pace for six quarters in the three months to June, official data revealed yesterday.
The emerging economy’s GDP expanded by a still-impressive 7.7 per cent in the second quarter of the year, the figures showed.
Economists had expected a slightly lower result of around 7.6 per cent.
High inflation and the global economic slowdown could apply stronger brakes to India’s growth in future quarters, analysts said.
“The Reserve Bank of India is likely to go ahead with a further 25 basis point hike at its next rate-setting meeting, on 16th September, bringing the repo rate to 8.25 per cent,” commented Capital Economics in a note.
The Bank has hiked rates eleven times since March last year.