Finance Ministry Says Considerable Scope For Monetary Easing - Dec 23, 2008

In its mid-year review of the economy, the finance ministry, today, 23 December 2008, said there is a considerable scope for monetary easing over the next six to 12 months and an aggressive monetary policy may be necessary if the global economic turmoil continues to adversely affect manufacturing. The finance ministry said formulating a right policy mix is a challenge.It said the economy is likely to grow between 7% and 8% in the fiscal year which ends in March 2009, down from 9% growth in the 2007/08 fiscal year.