Weak macro data creates room for interest rate cut: Angel Broking

Views of Mr. Vaibhav Agrawal (Head of Research and ARQ):

"India's industrial output grew by 1.7% in May vs. 3.1% in April. The retail inflation also continued to downtrend in June to 1.54% vs. 2.18% in May. This again hints at the slower growth in the Indian economy. RBI has lowered the inflation expectation for FY18, however the May inflation at 1.54% is lower than those expectations too. Despite the weak macro data, RBI may still like wait and observe the ramifications of the Fed unwinding the balance sheet, which is expected to happen in 2017. In our opinion, the current macroeconomic data suggests room for RBI to cut the interest rate."

Source : Equity Bulls

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