World's fastest GDP growth rate sets stage for an interest rate hike by RBI

The RBI expects growth to hit 7.4 percent in the year to March 2019 amid improved demand, broadly in line with the market consensus

India’s economic growth is picking up pace in an environment of rising price pressures, setting the stage for an interest rate increase as early as next week.

Growth accelerated to 7.7 percent in the fourth quarter of the financial year ended March 31, government data showed on Thursday, the fastest pace of any major economy. That’s adding to calls for Governor Urjit Patel to pull the rate trigger at the June 6 monetary policy meeting, and follow central banks in emerging markets from Argentina to Indonesia that have stepped up action to stem outflows and curb a rout in their currencies.

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