June 18, 2024 (MLN): Fitch Ratings expects inflation and interest costs to decline in tandem, with economic growth and primary surpluses driving government debt/GDP gradually lower.

The rating agency forecasts FY25 inflation at 12%, and the FYE25 policy rate at 16%.

On the other hand, it believes tight policy settings may depress growth more than the government expects, and have reduced its growth forecast to 3.0% for FY25, from 3.5%, despite some improvements in short-term indicators of economic activity.

Read more: Budget FY25 targets deficit reduction, supporting IMF prospects

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Posted on: 2024-06-18T18:10:42+05:00