RBI Governor Y.V. Reddy Speaks About Credit Policy

1. RBI governor Y.V Reddy says that domestic factors are dominating policy making and pressure on inflation continues.

2. The global situation continues to be uncertain and the government sees FY09 GDP at 8.5%, he says.

3. The government to maintain FY08 inflation target of 4.5% and inflation not as comfortable as the numbers indicate, he says.

4. The Central Bank will take a call on rates and one can expect a revision soon, he says. There is no bar for banks to revise lending and deposit rates downward, he adds. RBI recognizes liquidity overhang and the stock market has displayed excess volatility, he adds.