India to Unveil Economic Growth for Q2

India will announce the pace of economic growth in the fiscal first quarter ended June as the highest interest rates in seven years cool consumer demand for homes, cars and appliances.

Asia's third-largest economy expanded 8.8 percent in the quarter ended March. The Central Statistical Organisation will release the report at midday on Aug. 29 in New Delhi. The economy is expected to expand 7.7 percent in the 12 months to March, the slowest pace in four years.

A government report last week showed that inflation quickened to 12.63 percent in the week to Aug. 9, the fastest pace in 16 years, increasing the likelihood the central bank will raise interest rates for a fourth time since June. Crude oil posted its biggest weekly increase in more than two months.

The central bank raised its repurchase rate to 9 percent from 8.5 percent on July 29, the third increase in two months. The Reserve Bank of India also increased the cash reserve ratio to 9 percent from 8.75 percent. The measures are aimed to contain inflation that reached a 16-year high.

India to Unveil Economic Growth for Q2, Bloomberg
8/26/2008 9:41:50 AM