By Cherian Thomas
Oct. 25 (Bloomberg) -- India's central bank governor Duvvuri Subbarao said inflation concerns persist, stressing the need to balance price increases with slowing economic growth.
``We can't drop our guard on controlling inflation,'' Subbarao told reporters in Mumbai today.
Subbarao yesterday kept interest rates unchanged and signaled he may hold borrowing costs in the coming weeks, triggering a plunge in stock and bonds prices.
The central bank cut India's growth forecast to between 7.5 percent and 8 percent for the year to March 31, from the 8 percent estimated in July. It kept its inflation estimate unchanged at 7 percent by March 31, while betting the decline in commodity prices will slow price increases.
India's key wholesale price inflation is at 11.07 percent, more than double the 5 percent aim of the central bank.
To contact the reporter on this story: Cherian Thomas in New Delhi at Cthomas1@bloomberg.net.
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