Speaking to CNBC-TV18 A Prasanna, Chief Economist, I-Sec PD, said that the economy is unlikely to recover fully in Q3.
India’s economy grew 7.3 percent in July to September, marginally quicker than the previous quarter’s 7.1 percent, but the revival could stutter in the coming months, hit by an economy-wide cash-crunch following the unexpected ban on Rs 500 and Rs 1,000 currency notes.
GDP growth may slow down to 6 percent in this quarter, he said, adding that liquidity crunch may not have a lasting impact.
Expect the RBI to cut rate By 25 bps in December, he said.
He also maintained that the rate cut by RBI may be the last in this cycle.
He has kept his agri growth forecast for this fiscal year unchanged at 3.5 percent.
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