fuel the momentum of reforms moving forward. with the sustained positive developments in almost all sectors of the economy, the outlook in 2014 remains upbeat. we are optimistic that gdp growth will reach the government ’ s growth target of 6. 5 to 7. 5 percent for the year. we also expect inflation to settle within the target of 3 – 5 percent for 2014. in 2015, the inflation target is lowered to 2 – 4 percent, which is consistent with our desired disinflation path. external sector dynamics will remain favorable, as trade is expected to rebound in light of expected global turnaround while remittances are seen to remain on a steady growth path. let me now go to the second part of my presentation : macroeconomic issues. actual developments and prospects all look and sound like it is all good, doesn ’ t it? yes, so far … all positive trends. but just like any shrewd investor, the bsp is mindful about the pockets of risks that could impinge on the country ’ s economic growth momentum. as they say, “ the trend is your friend until it bends. ” let me focus on three issues : 1. risks to price stability ; 2. impact of the gradual tightening of us monetary policy ; and 3. concerns raised on the rapid growth in domestic liquidity and credit which, nevertheless, remain consistent with fundamentals. the first issue is : what are the risks to price stability? we ’ ve been able to keep inflation within the government ’ s target for 5 consecutive years now. is that a trend we can keep? i know many of you are used to looking at charts and trends. the chart on the right side of the screen is something which you may not be that familiar with. it ’ s called a fan chart. it shows the projected path of inflation and the likely area this can stray about, given certain levels of confidence. inflation is seen to be manageable over the policy horizon, even as the inflation path has somewhat moved higher. the left hand side of the screen lists the potential price risks. potential price pressures are still coming mostly from the supply side, notably potential increases in power rates and higher food prices resulting from an expected bis central bankers ’ speeches el nino episode in the second half of 2014. these factors highlight the continued risk of second - round effects, which are thus far, not yet evident. the downside risks to inflation are associated with the potential growth slowdown in key emerging markets and risk of def

y v reddy : communications policy of the reserve bank of india address by dr y v reddy, deputy governor of the reserve bank of india, at the 150th anniversary of the reuters group, mumbai, 28 august 2001. * * * mr. green, mr. weetman, mr. new and friends, i am thankful to the organisers and in particular mr. new for giving me the honour of participating in the 150th anniversary celebrations of the reuters group. in all innocence, i accepted the invitation only soon to realise that there is no free lunch or free dinner in this world. i am assigned the task of inaugurating the evening and addressing the guests on this occasion. i pleaded for some draft from reuters, though informally. as you may be aware, as senior bureaucrats, we are good at reading out excellent speeches drafted by others. but, the organisers insisted on giving me a free hand. it was a polite way, i presume, of suggesting that we do our homework diligently. so, a visit to reuters website and websites of several central banks became necessary to select a subject and also to obtain some material for a suitable address on this occasion. of course, i consulted several of my colleagues in the reserve bank, including ms. alpana killawala, the points person in our relations with the media. reuters reuters is, perhaps, synonymous with online news but there is more to reuters than purveying news. in 1850 - 51, mr. paul julius reuter, the founder had used a fleet of forty five pigeons to deliver news and stock prices between brussels and aachen in germany. now, in 2001, besides serving the financial markets using state of art technology, reuters information is read by an estimated 73 million people each month. the reuters website provides a long list of its impressive achievements over the last 150 years. an aspect that is the most striking is the reach of its information to different parts of the world. reuters is a prime example of how the most modern available technologies can be harnessed to minimise information asymmetry. to quote from the reuters website : “ over 5, 58, 000 professional users in 69, 700 locations access reuters information and news worldwide. data is provided on more than 9, 40, 000 shares, bonds and other financial instruments as well as on 40, 000 companies. financial information is obtained from 257 exchanges and over - the - counter markets. 5, 047 clients contribute prices, opinions