GDP growth expected to be 8.5%: RBI Governor

GDP growth for the current year is expected to be about 8.5 per cent while inflation likely to be below five per cent, Reserve Bank of India Governor Y V Reddy said in Chennai on Friday.

"For the current year, though subject to review, current expectations is GDP growth will be 8.5 per cent. Inflation would be below five percent," he said at a management seminar conducted by the Great Lakes Institute of Management.

The governor also said the external sector continued to be stable and strong."The fiscal situation is likely to be on track.The financial market, by and large, particularly money market, government securities market and products market, are expected to be reasonably stable," he said.