Highlights of RBI's Macroeconomic and Monetary Developments

Following are the highlights of the Reserve Bank of India's Macroeconomic and Monetary Developments: Second Quarter Review 2011-12:

* Another round of rate hike likely tomorrow

* Economic growth may fall below earlier estimate of 8%

* Agriculture growth prospects remain encouraging

* High inflation likely to persist over next couple of months

* Fiscal deficit target of 4.6% for FY12 may be breached

* Credit growth expected to moderate as growth slows

* Investment demand softening due to monetary tightening;
could impact pipeline investment in coming years

* Exports, overseas remittances could decelerate

* Disinvestment target of Rs 40,000 crore may be missed

* There is a risk of not meeting the tax collection target