STOCK MARKET BSE NSE

RBI lowers growth forecast to 5.7 percent

Published: 29th October 2012 06:00 PM  |   Last Updated: 29th October 2012 06:00 PM   |  A+A-

RBI__AP

In its quarterly review of the monetary policy, the central bank kept the Cash Reserve Ratio (CRR), unchanged at 4 percent. (AP)

By IANS

The Reserve Bank of India (RBI) Monday lowered the country's economic growth forecast for the current financial year to 5.7 percent from its earlier projection of 6.5 percent.

In a document released a day ahead of the second quarter review of the monetary policy, the central bank said that along with the slowing growth inflationary pressure was likely to further worsen in the Indian economy.

The RBI revised upward its projection for inflation based on the wholesale price index (WPI) to 7.7 percent from its earlier estimate of 7.3 percent.

The median projection for 2012-13 in the Reserve Bank?s survey of professional forecasters has been lowered to 5.7 percent from 6.5 percent for growth, while that for average WPI (wholesale price index) inflation is revised upwards to 7.7 percent from 7.3 percent,? the RBI said.

Indian economy has registered sluggish growth in the recent quarters. It expanded by 5.3 percent in January-March 2012 quarter and 5.5 percent in the quarter ended June, according to government data.

The lowering of growth forecast by the RBI comes a few weeks after the International Monetary Fund (IMF) sharply lowered India's GDP growth projection, citing sluggish structural reforms and worsening global economic situation.

The IMF early this month cut India's GDP growth forecast for 2012 to 4.9 percent from its earlier projection of 6.2 percent announced in July.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp