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Macquarie cuts India 2013/14 GDP forecast to 5.3 percent

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Reuters MUMBAI
Last Updated : Jul 18 2013 | 11:25 AM IST

MUMBAI (Reuters) - Macquarie cut India's economic growth forecast for the fiscal year ending in March 2014 to 5.3 percent from 6.2 percent, citing negative factors including the rupee fall, capital outflows, political uncertainty and a slowdown in new projects.

Macquarie added the Reserve Bank of India's recent measures to drain liquidity from the financial system also mark a shift towards a focus on financial stability from growth concerns, and predicted the central bank may delay lowering rate cuts.

Macquarie's forecast, issued in a report dated Wednesday, is below consensus forecasts. A Reuters poll in April forecast India would grow 6 percent in the fiscal 2013/14 year.

(Reporting by Rafael Nam; Editing by Jijo Jacob)

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First Published: Jul 18 2013 | 11:18 AM IST

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