Macroeconomic and Monetary Developments Third Quarter Review 2011-12

The Growth outlook has weakened as a result of adverse global and domestic factors that have been mentioned above. Business and consumer confidence has been impacted. Professional forecasters now see a weaker growth in the economy. However, inflation and expectations of inflation remain high and upside risks emanate from exchange rate pass-through, revisions in administered prices and higher-thanexpected current fiscal spending. Consequently, monetary actions will need to strike a balance between risks to growth and inflation. [RBI]. URL:[http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/M2D210112FL.pdf].