Goldman Sachs joins predictions of deeper India rate cuts as slowdown drags

Goldman slashed its growth forecast to 6 per cent for the current fiscal year to March from 6.9 per cent earlier.

The deceleration in India’s economic growth to the slowest in six years prompted Goldman Sachs Group Inc. to join other lenders in predicting deeper interest-rate cuts by the central bank to revive the pace of expansion.

The Wall Street firm expects the Reserve Bank of India to reduce interest rates by 50 basis points in the next quarter, compared with its earlier estimate of 25 basis points. Elsewhere, Barclays Plc forecast an additional 65-basis-point decrease by the end of this year and Kotak Mahindra Bank estimated a 75-point reduction will come from the RBI.

“We now think a 50bps rate