India Gains as Gold Plunge Boosts Scope for Rate Cuts: Economy
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The gold rout may narrow India’s record current-account deficit, easing pressure on the rupee, damping inflation and boosting scope for a further reduction in interest rates.
Gold purchases account for more than two-thirds of the deficit, which reached $32.6 billion in the quarter ended Dec. 31, according to the Reserve Bank of India. The metal’s 17.4 percent plunge in 2013 could help cut import costs by almost $7 billion in the 12 months ending March 2014, Barclays Plc said.