New Delhi, Mar 15: India's central bank governor, Bimal Jalan said today that the fiscal deficit remained a difficult problem but overall macro-economic conditions were favourable for accelerating growth. Jalan said the average rate of inflation continued to be satisfactory despite some adverse impact from a drought and increase in oil prices.

He said the economy was strong enough to take care of any eventuality arising out of adverse international developments.
"Assuming normal monsoon in 2003/04, circumstances were propitious for a substantial increase in growth rate," Jalan told reporters.
"As of now it is continuing," Jalan said, when asked whether the central bank would continue with its soft interest rate policy. Bureau Report