Barclays Forecasts Inflation At 17%, USD/Re at Rs 46 By December 2008

Barclays Bank: No Light In Sight

India's Inflation will continue to accelerate, fiscal risks are picking up and financial asset prices are headed south, in our view.; WPI inflation could hit 17% by September 2008; Our end-2008 repo rate forecast is 10.5-11.0% versus market expectations of 9.5%; The rate currently stands at 8.5%.; Our forecast for the FY 08/09 fiscal deficit is 3% of GDP versus the government’s 2.5% of GDP; Expect USD/INR to rise to 44 in the next few weeks and to 46 within the next six months.


Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

Nothing in this article is, or should be construed as, investment advice.