RBI's Reddy sees demand pressure build up

Reserve Bank of India governor Yaga Venugopal Reddy said on Wednesday 26 October that price pressures were building up in the country which is expected to grow 7.0-7.5 percent by March 2006.

"There is dominant supply side pressure, but demand-side pressure is not too weak either," Reddy told reporters. He said the central bank's inflation forecast of 5.0-5.5 percent by March 2006 factored in crude oil prices at $60 a barrel.

Reddy said there were expectations that the repo rate would revert bac