Economists predict deeper interest-rate cuts, slow economic growth

Economists have cut their forecasts for India’s economic growth and predicted deeper interest-rate cuts after data showed a sharper-than-expected slump in output.

Goldman Sachs Group and Citigroup lowered their growth projections to 6 per cent for the fiscal year, while Oxford Economics said there’s a risk the expansion could be weaker than that.

GDP rose 5 per cent in the June quarter from a year ago, the slowest pace in six years and lower than all the forecasts in a Bloomberg survey of economists. The weakness was broad-based, with consumption and export growth slowing.

According to the UBS India financial conditions index, the