The Reserve Bank of India on Tuesday stuck to its May credit policy stance of 6.5-7 per cent economic growth and 5 per cent inflation during 2004-05, despite the rise in international oil prices threatening to push up domestic prices.
"Whatever has been projected in the Monetary and Credit Policy of May, stands," RBI Governor Y V Reddy said before a meeting with the new Finance Minister P Chidambaram.
RBI had projected a GDP growth of 6.5-7 per cent for 2004-05 and an inflation of 5 per cent in the May credit policy.
The central bank also kept the benchmark bank rate unchanged at 6 per cent and repo rate at 4.5 per cent.
Asked whether the rising oil prices in the international market would put pressure on domestic price level, Reddy said, "The oil price hike is a known certainty. Therefore, it cannot be treated as a shock."
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