Growth forecasts may be lowered: RBI

8220;2008/09 will be a difficult year, 2009/10 will also be a difficult year, perhaps more difficult,8221; Subbarao said.

He said the central bank would take a fresh look at its growth projections when it meets for a scheduled review in January.

8220;All indications are that it may be revised downwards,8221; Subbarao said.

His comments came barely three days after policymakers slashed key interest rates by 1 percentage point and announced a 4 billion stimulus package of extra spending for battered sectors such as autos and real estate.

At its October review, the central bank projected 2008/09 growth at 7.5-8.0 per cent with a downward bias. Many private economists expect growth at around 7 per cent.

On Wednesday, Morgan Stanley cut its India growth forecast for the year beginning April 2009 to 5.3 per cent from 5.7 per cent earlier, due to falling domestic and external demand in the wake of a worsening global economy.