“Don’t expect much of a change in the key interest rates in the RBI policy...Inflation is due to supply side issues, especially of food items, which have small weight in the WPI,” Centre for Monitoring Indian Economy (CMIE) Chairman S A Dave told PTI here. He also noted that there is no problem of excess liquidity in the system to warrant an immediate RBI action on the rates front.
GDP growth
Further, CMIE pegged the economic growth at 7.5 per cent for the current fiscal on the back of strong industrial growth— slightly lower than the projections of Finance Minister Pranab Mukherjee.
“Growth of 7.5 per cent is possible during 2009-10 as manufacturing is doing well,” Dave added. Dave further said the GDP could grow higher in the next financial year.
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