HALISTER1: India May Target Fiscal Deficit of 3.5% in FY18: BofAML

India May Target Fiscal Deficit of 3.5% in FY18: BofAML

(Bloomberg) -- Govt. may target fiscal deficit of 3.5% of the GDP for FY18, same as the current fiscal year, Indranil Sen Gupta, India economist at Bank of America Merrill Lynch, writes in note.
  • Expects govt to target a deficit of 3.5% with the N. K. Singh committee, which was set up by the government to review targets, likely to relax the original 3% target to 3%-3.5%: Gupta
  • Is more confident of a 25bps rate cut in Feb and April after latest data releases of CPI, wholesale price index, and industrial production
  • RBI rate cut will support INR by attracting foreign investors into the equities market. Foreigners own $400b of the nation’s shares, almost 5 times the value of the bonds held
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Indranil Sengupta (Bank of America Corp)

To de-activate this alert, click here

UUID: 7947283