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  Economy   (Market View)  
`Second Quarter Review 2009-10` report
Reserve Bank of India (RBI) today said that global economy has started showing tentative signs of recovery, signaling the winding down of global recession.

Global recovery is, however, widely perceived to remain slow and gradual, with receding but significant downside risks, it added.

Economic outlook is, therefore, a mixture of upside prospects of recovery and downside risks. Managing the trade-off between supporting growth and reining in inflation expectations poses a complex policy challenge``, apex bank said.

It further added that from the stand point of monetary policy, anchoring inflation expectations in the face of sustained high inflation in essential commodities will be a key challenge.

Deficient monsoon and the associated drought like conditions in several parts of the country, and the more recent floods in some other parts, could also dampen rural demand, it said.

Let us hope the Mkt maintains the Upswing, with regards
rvk41		   
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