From The BBC:
India’s economy grew at a slower-than-expected annual rate of 7.9% in the three months to June, its slowest rate of growth in more than three years.
This compared with 8.8% in the previous quarter and 9.2% seen in the same quarter a year earlier.
High interest rates, rising oil and food prices are likely to contain growth at about 7.5%, analysts said, down from 9% or more in previous years.
India has struggled to contain inflation, which is at a 13-year high.
The Reserve Bank of India has been raising rates to cope with rising inflation, and they now stand at 9%, an increase of 1.25% since April.
“These are numbers that shouldn’t surprise,” said Saumitra Chaudhury, a member of the Prime Minister’s Economic Advisery Council.
“When you have monetary tightening, you do get lower growth. That was expected,” he said. “But it’s not terribly low; 7.9% is still high by historical standards.”
Analysts doubt the central bank will ease interest rates.
“In the face of…
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