Indian economy 4Q Gross Domestic Product is about to be released in February 28th 2018. Estimates anticipate a September – December growth of 6.90% (previous: 6.30%), its fastest pace since December 2016. Indian 4th quarter Gross Value Added, which provides a productivity measure for the entire economy is to be published at 6.60% (previous: 6.10%), its highest rate in 2017. Both indicators, as a matter of fact, have been strongly impacted by a low base year, mainly caused by recent Government’s demonetization measures. Recent GDP growth will give further support to a rate hike in April 2018, following Royal Bank of India’s hawkish minutes on February 21st 2018 (between 75-100 bps).
Since RBI’s minutes last week, Indian Sensex trades 542 points higher, at 34’395 (+1.60%) while 10-year Government yields decreased by -0.29% at 7.69%. USD/INR appreciated since last week, currently trading at 64.74 (+0.80%).
By Vincent Mivelaz