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Inflation to be 6 - 7% by March 2011: RBI survey

Inflation to be 6 - 7% by March 2011: RBI survey

Clarifying that the survey does not represent the views of RBI, it said forecasters have slightly revised the projections for economic growth to 8.5 per cent this financial year.

Forecasters in a Reserve Bank of India's (RBI) survey pegged inflation in the range of 6 to 6.9 per cent by the end of this financial year, against the central bank's projection of 5.5 per cent.

"Forecasters have assigned the highest chance (34.3 per cent) that inflation will fall to 6-6.9 per cent in by March of 2010-11," RBI said in the survey.

Clarifying that the survey does not represent the views of RBI, it said forecasters have slightly revised the projections for economic growth to 8.5 per cent this financial year from 8.4 per cent last survey, in line with government and central bank's expectation.

The forecasters also expect economic growth to be 8.5 per cent next financial year, lower than 9 per cent pegged by the government.

These are the mean gross domestic product (GDP) growth projected by forecasters.

However, they have assigned highest probability to 8.5-8.9 per cent growth for this financial year and 8-8.5 per cent for next year.

Maximum number of forecasters predicted economic growth to be 9.2 per cent this financial year and 9 per cent during 2011-12.

Inflation has fallen to a nine-month low of 8.58 per cent in October from 8.62 per cent in September.

Economic growth had fallen to 6.7 per cent during 2008-09 after the economy came under the impact of global financial crisis, against 8.7 per cent recorded in the previous five years.

After the government provided stimulus, the economic growth moved up to 7.4 per cent during 2009-10.

In the first quarter of this year, economy expanded by 8.8 per cent. The government has pegged economy to grow by 8.5 per cent this year and retained the target despite industrial growth slowing down for the second consecutive month to a 16-month low of 4.4 per cent in September.

The survey is based a questionnaire responded by 30 forecasters.