S&P retains GDP forecast at 6.5%

Cites strong domestic demand; expects another 25 bps rate cut by RBI

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S&P Global Ratings on Tuesday retained India’s GDP growth forecast at 6.5% in the current fiscal, citing strong domestic demand amid a largely benign monsoon.

S&P also said it expects a 25 bps rate cut by the RBI this fiscal as it revised its inflation forecast down to 3.2% for this fiscal year. India’s GDP grew at 7.8% in the April-June quarter.