Economy / India
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Inflation Concerns Persist As Focus Turns To Growth
October 2008 | Economic AlertSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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BMI View: We believe the Reserve Bank of India (RBI) will need to implement further measures to uphold liquidity in the domestic banking system and shield the economy from global market turmoil. While inflationary pressures linger, we believe the central bank's priorities are now shifting towards growth and thus acknowledge downside risks to our forecast of the RBI keeping rates on hold in FY2008/09 (April-March). We are also eyeing downward revisions of our 7.9% and 7.8% GDP growth forecast for FY2008/09 and FY2009/2010 respectively, with the latter figure looking particularly at risk.