Goldman Scraps RBI Interest-Rate Increase View on Better Monsoon
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Goldman Sachs Group Inc. has scrapped its forecast for the Reserve Bank of India to raise borrowing costs after a pickup in monsoon rains and a drop in oil prices tempered the inflation outlook.
The U.S. lender, which had expected a 50-basis-point increase in the benchmark repurchase rate this year followed by a reduction of the same magnitude in the second half of 2015, now sees the RBI staying on hold through the end of next year, it said in a report. Consumer-price gains slowed to 7.8 percent in August, from as high as 11.16 percent in November, the median estimate in a Bloomberg survey shows before data due Sept. 12.