Drop in crude prices to keep CAD in check: Indranil Pan, Chief Economist, Kotak Mahindra Bank

"In a chat with ET Now Indranil Pan, Chief Economist, Kotak Mahindra Bank shares his views on current account deficit."


ET Now: What is your own analysis of the CAD numbers and were they in line with your expectations?

Indranil Pan: Probably, slightly higher than our expectations. May be but the CAD numbers definitely do not reach eyebrow at this point in time and as you rightly pointed out it would be the oil meltdown that will actually be sort of taking effect in the third quarter.

In the fourth quarter, we might expect that gold imports can go on the higher side because in October we had about $4.2 billion inflows imports in terms of gold value.

In the second quarter we saw almost a $7.6 billion inflows in gold value so we have almost done slightly higher than half of what we did in the previous quarter. In October we sort of saw gold imports rising the counter balance would be the oil price drop and drop in other commodity prices which would keep the current account in check.