Higher interest rate may cap GDP at 7.5%: Nomura

Higher interest rate may cap GDP at 7.5%: Nomura

Growth in the current fiscal year will be faster in the first half and will likely face pressure in the second half to end the year at 7.5 per cent, a Japanese brokerage said on Friday. The rate hike by RBI and the oil prices raise concerns over sustainability of what ws termed as a " cyclical, broad-based recovery", Nomura 's chief india economist sona varma said. "We feel growth will be front-ended in fy19. The first quarter can see growth of 7.5-8 percen," she said.

The Business Standard, New Delhi, 16th June 2018

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