RBI deputy governor Subir Gokarn hinted at little change in RBIs stance in light of gloomy IIP data and inflation figures that remain stubbornly high. Gokarn said the central bank would keep watch on whether the output data,which showed a slowing economy,were later reflected in prices growing more slowly. The banks moves were based on a decelerating economy.
He told reporters: The IIP figure does have an impact on the projection for the year as a whole but the stance that we had taken was itself premised on deceleration. So this number doesnt change that stance. How it plays out later on,particularly on the dynamics of inflation,clearly will influence beyond the quarter, he added.
Trouble in the euro zone is unlikely to affect the RBIs day-to-day monitoring of short-term interest rates,Gokarn said.