Date:08/01/2005 URL: http://www.thehindubusinessline.com/2005/01/08/stories/2005010801560600.htm

Back RBI sticks to forecast on growth, inflation

Our Bureau

Mumbai , Jan. 7

THE Reserve Bank of India is sticking to its forecasts for economic growth and inflation despite the recent rise in prices of sugar and steel, according to Dr Y.V. Reddy, RBI Governor.

While there were some price pressures, overall there is no reason yet to revise numbers, Dr Reddy said speaking to presspersons on the sidelines of the Purshotamdas Thakurdas memorial lecture, organised by the Indian Institute of Banking and Finance, here on Friday.

Dr Reddy said RBI was closely monitoring the prices and was continuously looking at global and domestic economic developments.

Responding to queries on a possible rate hikes by the US Federal Reserve, Dr Reddy said, "The weight is still to domestic factors while determining the interest rate regime, while not ignoring international factors".

The wholesale price index-based inflation fell to 6.39 per cent for the week ended December 25, from 6.50 per cent the previous week.