India will have to battle against NOT setting the precedence of becoming the first BRIC country to be slashed to junk status.
India’s troubles have intensified, after the country’s credit outlook was downgraded to negative by ratings agency Fitch.
The group downgraded the outlook, citing persistent inflation pressures and weak public finances.
At the same time, the Reserve bank of India surprised the markets by keeping its key lending rate unchanged at 8 percent.
India’s central bank said a "further reduction in the policy interest rate at this juncture, rather than supporting growth, could exacerbate inflationary pressures."
Meanwhile, IBTimes UK revealed that India which relies on 80 percent of imports for its crude oil needs, is also opening itself up to more inflationary pressures as it seeks more oil and cooking gas from the OPEC.
This after it axed 11 percent of imports from Iran due to US-led sanctions.
The combination of both the lack of rate cuts and India’s change in energy imports does not bode well for the country as it consistently waning GDP growth and high inflation
Written and Presented by Lianna Brinded.