RBI may up growth forecast in Jan monetary policy: Thorat

Last Updated: Thursday, December 03, 2009, 20:05

Tags: RBI, growth forecast, Thorat

RBI may up growth forecast in Jan monetary policy: Thorat

New Delhi: The Reserve Bank today said it may review the growth forecast for the current fiscal in its monetary policy review next month on the back of 7.9 per cent GDP growth in the second quarter.

"It does seem that the overall growth forecast of six per cent with an upward bias made by the RBI may have to be reviewed at the time of the next policy," RBI Deputy Governor Usha Thorat said here today.

The central bank had projected six per cent growth with an upward bias for the current fiscal and it is slated to announce its new forecast at its monetary policy review in January.

During the July-September quarter, the economy expanded by high 7.9 per cent growth, much above the projections made by the analysts and economic think tanks.

An indication to revise the growth rate was also given by RBI Governor D Subbarao in Orissa today. He said that the RBI would revisit the growth projection of six per cent in its January policy. Thorat also said RBI would have to reassess its accommodative policy stance going forward, since the economy is on a rebound and prices are rising.

Food inflation surged to 17.47 per cent in the third week of November while overall inflation stood at 1.34 per cent in October. RBI has projected inflation to touch 6.5 per cent by end of the current fiscal.

PTI

First Published: Thursday, December 03, 2009, 20:05