The RBI annual report points to a minor improvement in financial savings; people are finally buying less gold. It also points out that the deficiency in the monsoon is falling and that the deficient monsoon won't have any impact on GDP, inflation or fiscal deficit.
The Reserve Bank of India (RBI) has pegged FY15 GDP growth at 5-6 percent with central estimate at 5.5 percent. The Central Bank also expects inflation to continue on the glide path of 8 percent for FY15. However, it sees upside risks to its 6 percent retail inflation target for 2016.
In its annual report, the RBI says the fiscal deficit likely to reduce further in the coming months. It feels the target to cut fiscal deficit to 3.6 percent by FY16 is feasible. However, it expects the current account deficit to widen from FY14 levels.
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RBI sees FY15 GDP at 5-6%; 8% retail inflation within reach
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