RBI sees sign of slowing in credit growth

MUMBAI: There are signs of deceleration of credit growth in India recently, RBI Governor Yaga Venugopal Reddy said in a speech released on Tuesday. "The acceleration of growth in the real sector has been reflected in the upward shift in the growth trajectory of credit extended by commercial banks, which in the past three years has been unprecedented in the history of the Indian economy," Reddy said in a speech delivered at Russia's central bank on Monday. "There has been some sign of deceleration in the recent period," he added. Reddy repeated that the central bank expected economic growth of 8.5 per cent in the fiscal year ending March 31, 2008, and that it wanted to contain inflation close to 5.0 per cent.