Breaking News

You are here » Indian-Commodity  :  Top News  :  Room for India's fiscal policy easing constrained by high debt burden: Moody's


Room for India's fiscal policy easing constrained by high debt burden: Moody's

Credit rating agency Moody's in its latest report Sovereigns - Brexit and Asia Pacific: Limited Direct Credit Impact; Some Sovereigns Exposed to Market Volatility', has said that in India the room for fiscal policy easing is constrained by high debt burden, but it also said that Britain's exit from the European Union will not have any significant credit impact on the Asia Pacific region and the sovereigns' exposure to external financing is limited for India.

Moody's in its report said that over the coming months, announcements related to Brexit could trigger financial market volatility in Asia Pacific sovereigns. It added that a shift in portfolio and/or banking flows that resulted in tighter financing conditions in some Asia Pacific markets would hurt growth, especially in countries where fiscal and monetary policy space is constrained.

Furthermore, Moody's said that where there is room for monetary and/or fiscal policy easing, the domestic authorities may take actions that would partially offset the negative shocks. It added that unless currencies depreciate significantly and stoke inflationary pressures, moderate inflation provides space to lower policy interest rates and ease domestic financing conditions.

The rating agency in its report cited that India's exports to UK were 0.4 per cent of the GDP in 2015 while shipments to European Union make up for 1.7 per cent. It said that India's GDP growth is likely to face challenge in next two years, due to sluggish global demand, high leverage in some corporate sectors and impaired credit supply.

Related News

View all news

Gold futures finish at one month low on Monday

Gold futures finished at one month low on Monday, with the increased risk appetite among investors improved stock markets and dulled bullion investments. Besides, a stronger dollar amid the anticipated......

Physical rubber prices ruled steady on Saturday

Physical Rubber prices ruled steady on Saturday due to buyer resistance in the market. Spot prices for RSS-4 and RSS-5 variety closed unchanged at Rs 125/ kg and Rs 120.50/ kg respectively.In the futures......

Gold futures trade almost steady on Monday

Gold futures traded almost steady on Monday, with cautious outlook from investors as they eyed on impending report from china showcasing dimmed economic growth to its slowest in 28 years in 2018 in face......

Top News

View all news

Coromandel International reports 14% fall in Q3 consolidated net profit

Coromandel International has reported results for third quarter ended December 31, 2018.The company has reported a fall of 15.23% in its net profit at Rs 152.67 crore for the quarter under review as compared......

Bajaj Auto planning to foray into electric vehicles next year

Bajaj Auto is planning to foray into electric vehicles (EV) next year, simultaneously with the migration of its conventional engine vehicles to BS-VI emission norms.The company also plans to launch electric......

Inflame Appliances, Lupin and IDBI Bank to see some action today

Inflame Appliances has set up a new facility to produce Electrical Chimneys & its parts, which can be considered as an 'Make in India' initiative as more than 90% Chimneys are imported from China......