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This is an archive article published on March 1, 2013

India Oct-Dec growth may be 8216;under-recorded8217;,says Credit Suisse

There are some reasons to believe that GDP growth is being under-recorded.

Credit Suisse said on Friday there are 8220;some reasons to believe8221; that India8217;s October-December economic growth data released after market hours on Thursday 8220;is being under-recorded8221;,according to an email sent to clients.

8220;In our view,there are some reasons to believe that GDP growth is being under-recorded,8221; the investment bank said in an email written by economist Robert Prior-Wandesforde and sent on Friday.

8220;None of the survey data,for example,point to anything like the kind of weakness that is being reported,8221; it added.

India8217;s economy grew at a worse-than-expected 4.5 percent in the quarter ended Dec. 31,hurt by a slowdown in agriculture,mining and manufacturing,government data showed on Thursday.

Credit Suisse also raised questions about the delay in the release of the growth data from 0530 GMT to 1130 GMT.

8220;If one were to be cynical,this may of course have been the intention as it didn8217;t make for particularly favourable viewing,8221; Credit Suisse said.

The investment bank also said the GDP data would 8220;surely lump more pressure8221; on the central bank to respond with an interest rate cut at the March 19 policy review,adding they continue to anticipate a 25 basis points cut next month,followed by another 25 bps in May.

 

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