Fitch lowers its 2023–24 growth forecast to 6.2% and anticipates a 25-bps increase from the RBI

As the world’s GDP is anticipated to slow to just 1.4% in 2023 from an earlier estimate of 1.7%, the worst expansion since 2008, Fitch Ratings on Tuesday lowered its growth expectations for India for the years 2023 to 24 from the 6.7% level it had predicted in September to 6.2%.

The global rating agency stated that it anticipates the Reserve Bank of India (RBI) to raise the policy rate to 6.15% this month and maintain this level until 2023 before the central bank’s monetary policy review is revealed on Wednesday.

Fitch noted that the economy’s growth of 6.3% in the second quarter was higher than its projection of 5.5%, therefore it kept its estimate of India’s GDP growth for 2022–2023 at 7%.