New Delhi: Enthused by the high 8.4 per cent growth in the second quarter, Reserve Bank of India (RBI) today (Jan 7, 2004) revised upwards the economic growth for 2003-04 at seven per cent.

Announcing this, RBI Governor Y V Reddy told FICCI Annual General Meeting that "our latest assessment is that the growth rate this fiscal will be around seven per cent with an upward bias".

Reserve Bank had projected six per cent growth in April and this was revised to 6.5-7 per cent for 2003-04 in the busy season credit policy in November last. Now it has been revised to seven per cent on the back of record 8.4 per cent in the second quarter this fiscal.

On the surging inflation, now at over 5.6 per cent, Reddy said this was unexpected and the magnitude of price rise was higher than "original expectations".

But Reserve Bank did not anticipate any adverse impact of the rise in inflation rate, he said.

Reddy said the measures taken in the November Monetary and Credit Policy would continue till the next policy in April if there were no unforeseen circumstances.