Moneycontrol
Aug 03, 2013 04:38 PM IST | Source: Reuters

RBI to roll back rupee steps in Q4: Barclays

The bank also pushed back their 75 basis point rate cut expectations to December 2013-April 2014 from September-December 2013 following RBI's cash tightening steps.

RBI to roll back rupee steps in Q4: Barclays

Barclays expects the RBI's cash tightening steps to be rolled back only in the December quarter as the Reserve Bank wants to avoid showing a lack of resolve about its measures by reversing them too soon.


Also Read: Sell Indian Rupee on rally, advises Karvy


"Having adopted these measures, the RBI will likely find it difficult to quickly reverse them, as that could be seen as a lack of resolve on the part of the central bank to support the currency and could be an additional risk for the INR."


Barclays also downgraded India's GDP growth forecast to 5.3 percent for 2013/14 fiscal year from 6.0 percent.

The bank also pushed back their 75 basis point rate cut expectations to December 2013-April 2014 from September-December 2013 following the central bank's cash tightening steps.

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