yield at the weakest at 9.15%.
The central bank, the governor noted, was as concerned about the weak economy as it was worried about inflation. Factory output, he observed had come in below expectations, but a good monsoon and the resultant pick-up in consumption along with a healthy export growth could push economic growth higher in October-December period, he added. Within consumer inflation, the RBI was comforted by the fall in core consumer price inflation and the fall in the momentum as well. “We will watch the incoming data carefully especially the harvest as well as the second round effect of fuel price increases before we make further decisions,” Rajan said.