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click here to return to main page of Mid-term Review of Annual Policy for the year 2004-05
Highlights of Mid-term Review of Annual Policy for the year 2004-05
Overall Assessment
The pick-up in investment activity and significant growth in non-food credit appear to be broad based and are not temporary phenomena.
As the magnitude and persistence of supply shock was partly unanticipated, demand management seems to invite closer attention, particularly for stabilising inflationary expectations in a credible manner.
While the Reserve Bank will continue to pursue stability, the markets should be prepared for the uncertainties.
Challenges for the rest of the year would broadly remain the same as in the first half of the year with equal weight being given to maintaining growth momentum and stabilizing inflationary expectations.
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