Economy Update

Key rates unchanged at the same level since last
cut in Apr’09

M3 growth has remained above the target of
17% for FY10, prompting the RBI to revise the
growth target to 18.0%

WPI inflation projection for FY10 revised up to
5.0% from earlier projection of 4.0%, since WPI
Index has already increased by 3.5% in the FY10

GDP growth target for FY10 retained at 6% with
upward bias

Despite bottoming of rates, Net Repo volumes
are still heavily negative at Rs 1.2 tln

RBI seems to maintain its accommodating stance
of anchoring inflation expectation and
sustaining growth momentum