‘Omicron spread may hit Q4 GDP outlook by 20-30 bps’
The Hindu
Reserve Bank may delay raising reverse repo rate, say HDFC Bank economists
HDFC Bank economists said the spread of the Omicron coronavirus and resulting curbs could lead to GDP growth coming in lower by 20 to 30 basis points (bps) than their earlier estimate of 6.1% for the fourth quarter ending March 2022.
The strong relation between economic activity and the Google Mobility Index in India suggested that with a rise in COVID restrictions — and hence mobility — economic activity was likely to take a hit in Q4, said the economists led by Abheek Barua. Other risks to the original forecast are in the form of States imposing restrictions, and restrictions extending beyond January.
The Reserve Bank of India (RBI) had projected Q4 growth at 6% in its monetary policy meeting in December.