Pune: India’s inflation is still higher than the central bank’s comfort level and the economy’s 7.4% expansion seen in 2009-10 is encouraging but not surprising, Reserve Bank of India (RBI) governor D. Subbarao said on Tuesday.
“Inflation is not at (a) peak level. It is still higher than we would like it. We would take inflation concerns along with growth (while formulating the monetary policy),” he said.
Annual wholesale inflation was at 9.59% in April, coming off a 16-month high of 10% in February, providing more room for RBI to hold off raising interest rates at least till its next review on 27 July.
“(The) GDP (gross domestic product) growth number that came out yesterday (Monday) for 2009-10 was quite encouraging but not surprising because...in our annual monthly policy statement in April, we had said growth for fiscal year 2009-10 will be 7.5%, in that range,” Subbarao said.
Official data on Monday showed that the economy grew 8.6% in the March quarter, the fastest in six months, broadly in line with market expectations, and growth in the 2009-10 year was 7.4%, from 6.7% in 2008-09.