Little room to respond to a crisis arising from global factors: RBI governor

The Reserve Bank of India Governor Duvvuri Subbarao said on Monday domestic factors were responsible for the slowdown in the country's growth momentum, and added declining investments were a cause for concern.

Mr Subbarao also said the RBI does not have adequate room through monetary policy to respond to a crisis arising from global factors.

India's growth hit a nine-year low of 5.3 per cent in the first quarter of 2012 due to political hold-ups on key reforms, high interest rates, and global economic uncertainty.

The RBI had cut its growth forecast for the ongoing financial year to 6.5 percent from 7.3 percent in its last monetary policy review on July 31.