India GDP growth: a six-and-a-half-year low – ANZ

Analysts at Australia and New Zealand Banking Group (ANZ) offered their take on Friday's release of Indian GDP report, which showed a further decelerating in growth to a six-and-a-half-year low level of 4.5% during the July-September quarter.

Key Quotes:

“At 4.5%, India’s Q2 FY20 GDP print was the lowest in 26 quarters. It also marked the sixth consecutive quarter of moderation.”

“The slowdown was led by further weakening in investment, which could not be offset by a step-up in government spending and net exports.”

“High frequency indicators continued to show sluggishness in October, suggesting any recovery will be slow.”

“Today’s print reaffirms our call for an imminent 25bp rate cut by the RBI at its policy meeting next Thursday. We expect another 25bp cut in February 2020 to bridge the widening output gap.”