Tuesday, July 28, 2009

RBI Inspection Projects Higher Growth Of 6.5 Per Cent In 2009-10 - July 28, 2009

Most recent round of professional forecasters’ survey of the Reserve Bank of India (RBI) has projected the country’s overall growth rate advanced at 6.5 per cent for 2009-10. However, growth rate was projected at 5.7 per cent in the previous survey.

The RBI’s Report on Macroeconomic and Monetary Developments: First Quarter Review for 2009-10 was released on Monday on the eve of the first quarter Review of the Monetary Policy.

However, the report warned that there are indications of inflation firming up by the end of the year.

It attributed price pressures to the waning base effect of last year, increase in commodity prices, delayed progress of monsoon potentially increasing food prices, and the inflationary implications of expansionary fiscal and monetary policies.

Meanwhile, the sectoral growth rate for the agriculture sector amid the delayed monsoon, has been revised downwards at 2.5 per cent (against 3 per cent in the last survey), the forecast for the industry and services sectors was revised upwards to 4.8 per cent (4.1 per cent) and 8.3 per cent (7.5 per cent), respectively.

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