In an interview to CNBC-TV18, Deepali Bhargava, Economist at Credit Suisse and Vivek Rajpal, Rates Strategist at Nomura India shared their reading and outlook about the same.
The rupee surged to a fresh 16-month high on Wednesday opening at Rs 65.40 for a dollar. The Indian currency was also the best performing currency in the world. The gain was led by strong FPI buying on Tuesday following BJP's landslide victory in Uttar Pradesh.
Deepali Bhargava, Economist at Credit Suisse expects GDP growth to accelerate to 7.4 percent in FY18.
Speaking to CNBC-TV18, Deepali Bhargava, Economist at Credit Suisse, said the government‘s target of containing the fiscal deficit to 3.2% of the Gross Domestic Product is the best it could have done under current circumstances.
The government‘s clampdown on black money by voiding Rs 500 and Rs 1,000 notes could think wealth destruction could be pretty meaningful, according to a former Reserve Bank Governor.
RBI is operating in an inflation targeting framework and they will decide on rate cuts with an eye on their 4-percent inflation target, says Jahangir Aziz, Asia Economic Research, JPMorgan.
Credit Suisse expects the Reserve Bank to cut rates by 25 basis points in December. However, the central bank's inflation target 4 percent looks difficult on a sustainable basis, says Asia Economist Deepali Bhargava.
We expect the rupee to depreciate to 67.70/dollar in three months and 71/dollar in 12 months, says Deepali Bhargava of Credit Suisse.
According to Deepali Bhargava, Economist at Credit Suisse, the uptick in consumer durables shows that in spite of the global demand shrinking, domestic demand is up. Overall, the data indicates of a stable growth than a random pick-up.
Deepali Bhargava, economist, Credit Suisse says it will be important to see how the unseasonal rains impact prices going ahead. She says the RBI may cut rates in June policy. But she expects a pause on rate cuts post June 2015.
We retain our 12-month USD-INR forecast at 64/dollar, says Deepali Bhargava of Credit Suisse.