<b>Credit Policy</b>: RBI 'alert' to global shocks

Y V Reddy, Governor, Reserve Bank of India (RBI), said the central bank is not expecting any domestic shocks, and agriculture is expected to do better than last year and industry could be close to last year's performance.

Reddy, while addressing the media at the central bank HQ today, said global shocks are likely, but the growth path stays unaffected.

"The global risks could be in the form of oil prices, food prices, China factor (prices hardening in China) and liquidity," Reddy said.

The central bank, while releasing the mid-term review of monetary policy, today said GDP growth would be 8.5% in the current fiscal, and inflation would be around 5%.

Reddy said the financial markets need to be ready for "unconventional" steps to handle "unanticipated global risks," but said the economy is witnessing a positive balance between growth and price stability.