RBI pegs growth at 6.5%, projects 5.4% inflation
The Times of India, July 28, 2009, Page 21
Mumbai: Revising the growth projection to 6.5% from the earlier 5.7% for 2009-10, Reserve Bank on Monday said it expected inflation to go up to 5.4% by this fiscal end. In its macro economic review, RBI, however, said indications are that dampened growth impulses may continue due to significant delay in monsoon in certain parts of the country and persistence of global recession.
It said that recovery in export growth could be weak in the near-term, coupled with lagged impact on manufacturing growth. The review, ahead of the quarterly review of RBI's annual monetary policy on Tuesday, quoted the central bank's Professional Forecasters Survey to indicate that the average inflation in the fourth quarter of 2009-10 will be around 5.4%.
On the inflation outlook, the review said, while certain indicators suggest possible firming up of inflation over time, other developments could also help in keeping the inflationary presures subdued. The indication of inflation firming up by this fiscal could be due to high base-effect, increase in commodity prices, especially oil and global recovery, RBI said.
Noting that the global econoic environment continues to be uncertain, RBI said the conduct of the monetary policy had to contend with the scale and pace of external shocks and their spillover effects through the real, financial and confidence channels.
“The thrust of the various policy initiatives has been on providing ample rupee liquidity, ensuring comfortable US dollar liquidity and maintaining a market environment conducive for continued flow of credit to the productive sectors,” RBI said. PTI
India’s external debt at $230 billion:
India's external debt went up by $5.3 billion or 2.4% to $229.9 billion as of March 2009, RBI said. The debt denominated in US dollar accounted for 57% of total external debt. PTI
Revenue deficit will be at its highest:
Revenue deficit would be at its highest-level ever while primary deficit would both be at its highest in India’s post-reform period, RBI said, adding the rise is due to higher growth in revenue expenditure. PTI
The Times of India, July 28, 2009, Page 21
Mumbai: Revising the growth projection to 6.5% from the earlier 5.7% for 2009-10, Reserve Bank on Monday said it expected inflation to go up to 5.4% by this fiscal end. In its macro economic review, RBI, however, said indications are that dampened growth impulses may continue due to significant delay in monsoon in certain parts of the country and persistence of global recession.
It said that recovery in export growth could be weak in the near-term, coupled with lagged impact on manufacturing growth. The review, ahead of the quarterly review of RBI's annual monetary policy on Tuesday, quoted the central bank's Professional Forecasters Survey to indicate that the average inflation in the fourth quarter of 2009-10 will be around 5.4%.
On the inflation outlook, the review said, while certain indicators suggest possible firming up of inflation over time, other developments could also help in keeping the inflationary presures subdued. The indication of inflation firming up by this fiscal could be due to high base-effect, increase in commodity prices, especially oil and global recovery, RBI said.
Noting that the global econoic environment continues to be uncertain, RBI said the conduct of the monetary policy had to contend with the scale and pace of external shocks and their spillover effects through the real, financial and confidence channels.
“The thrust of the various policy initiatives has been on providing ample rupee liquidity, ensuring comfortable US dollar liquidity and maintaining a market environment conducive for continued flow of credit to the productive sectors,” RBI said. PTI
India’s external debt at $230 billion:
India's external debt went up by $5.3 billion or 2.4% to $229.9 billion as of March 2009, RBI said. The debt denominated in US dollar accounted for 57% of total external debt. PTI
Revenue deficit will be at its highest:
Revenue deficit would be at its highest-level ever while primary deficit would both be at its highest in India’s post-reform period, RBI said, adding the rise is due to higher growth in revenue expenditure. PTI
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