Annual Monetary and Credit Policy for the year 2004-2005
Annual
Policy Statement
18 May 2004
The Statement consists of three parts:
I. Review of Macroeconomic and Monetary Developments during 2003-04 II. Stance of Monetary Policy for 2004-05 III. Financial Sector Reforms and Monetary Policy Measures
2. The Statement consists of three parts: (I) Review of Macroeconomic and Monetary Developments during 2003-04; (II) Stance of Monetary Policy for 2004-05; and (III) Financial Sector Reforms and Monetary Policy Measures. An analytical review of macroeconomic and monetary developments is also being issued, as in the past, as a separate document providing the necessary information and technical analysis with the help of simple charts and tables.
I. Review of Macroeconomic and Monetary Developments during 2003-04
Domestic Developments
3. The annual Statement on monetary and credit policy released on April 29, 2003 projected real GDP growth for 2003-04 at about 6.0 per cent for policy purposes. Based on a review of developments since then, the Reserve Bank had scaled up its projection of GDP growth from time to time, and expected a GDP growth of 7.0 per cent with an upward bias in January 2004. The advance estimate of GDP for 2003-04 released by the Central Statistical Organisation (CSO) in February 2004 has placed the GDP growth much higher at 8.1 per cent.