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RBI promises to be nimble footed. Honestly, as an economist it is now becoming more difficult to predict the timing of the first rate cut in India, says Indranil Pan of Yes Bank.
RBI MPC expects India's GDP to grow at 7 per cent in the current financial year
Experts say the timing of the rate cut is linked to the inflation rate reaching 4 per cent; however, the RBI might only be in a position to cut rates either in the August policy or even later; Will RBI MPC Start Cutting Interest Rates From August 2024?
Experts said the agriculture sector may have also contributed to the slowdown, even as industry and services kept the economy growing. "The agricultural sector is expected to experience a pronounced slowdown due to diminished rainfall activity and subsequent declines in reservoir levels," said Rajani Sinha, chief economist at CareEdge. "After a lower-than-projected kharif output, rabi sowing has exhibited a sluggish trend through most of the season, except for an uptick in the last couple of weeks," Sinha said.
India likely grew 6.6% in the third quarter this fiscal year, according to the median of estimates in an ET poll of 15 economists, decelerating from 7.6% in the preceding three months. Forecasts ranged from 6% to 7.2% for the quarter ended December.