Government trying to navigate its way to pass the GST bill in Rajyasabha
Essence of the Week
Nov 30, 2015 | Source: AxisDirect
The government has increased its parleys with the Opposition on GST, raising hopes of passage of the landmark bill in the RajyaSabha during the ongoing parliament session. However, the Opposition, especially Congress, is still not on board on several key issues in the bill and it will be interesting to see how the government navigates its way on GST in the RajyaSabha.
The RBI, on Tuesday, will announce its last monetary policy of 2015. We do not expect the RBI to make any further moves on interest rates during the policy though we expect it to reiterate its accommodative policy stance despite a likely Fed rate hike mid-December. The RBI delivered a 50 bps frontloaded cut in September taking the total to 125 bps for the year making it one of the most eventful years from monetary policy perspective given its adoption of inflation targeting framework.
On Monday, the CSO will release its second-quarter FY16 GVA number. We expect the print to come in around 7.4% YoY. It will be interesting to see if H2FY16 growth could be higher than H1 given the recent spurt in some cyclical data points (cars, CVs and fuel demand etc).