India’s robust Q1 growth rate at 7.9% beats expectations

HONG KONG – BBVA Bank researchers say robust Q1 GDP in India dims prospects of a further interest rate cut. The economy grew at  7.9% y/y in Q1, beating expectations, as strong private consumption offset negative investment contribution.

“In the wake of an improving but unbalanced growth recovery, RBI will likely adopt a wait and watch policy approach, characterised by a status quo on June 7 while leaving room for a final 25 bps rate cut later in 2016,” BBVA says.  www.bbvaresearch.com (ATI).