RBI warns of Higher Inflation

Recently, RBI said that it expects economic growth to moderate to 8% or below in 2011-12 due to global uncertainty and rising interest rates. The central bank also expects inflation to be high for most of the year. Economic growth will moderate to 8% or below in 2011-12 because of global uncertainty and rising interest rates. RBI has also warned of tough times in the current financial year and says that Fiscal deficit in 2011-12 may overshoot the budget projection.