Indian growth projected at 7.6-pct for 2011: RBI Gov

VIJAYAWADA, (AsiaPulse) – Reserve Bank of India
Governor D Subbarao said the economic growth rate for the
current fiscal year is projected at 7.6 per cent as against
earlier projections of 8 per cent. While hoping to tame down the inflation below 7 per cent by
the year end, Subbarao said he was not sure when the benchmark
interest rates will be reduced.

“Challenges before the RBI is to balance growth and
inflation. Previously (GDP) growth was at 9 per cent and we
hoped that it may cross 10 per cent previously.

“But due to various factors, RBI projected it will be 8 per
cent. But finally in the recent review it is projected to 7.6
per cent,” Subbarao said.

Replying to a query on interest rates, the governor said: “I
cannot say when and how the Interest rates will come down.

After 13 hikes in key policy rates since March 2010, the
Reserve Bank of India (RBI) in its mid-quarterly policy review
opted to keep the repo rate, at which it lends to the banks,
unchanged at 8.5 per cent, apparently due to the worsening
global economic outlook and decelerating domestic growth.

Reverse repo (rate at which the RBI borrows from banks) is
also kept at 7.5 per cent.