In its quarterly review of the economy, the central bank forecast 6.5 per cent GDP growth for this year opposed to 5.7 per cent it forecast earlier.
RBI noted that food inflation which remained high could be further propelled by the lack of rains. Apart from this consumer price indices continued to be at aggravated levels.
"The inflationary pressures may remain moderate if the protracted global recession leads to dampened commodity prices, agricultural growth remains unaffected despite delayed progress of monsoon and the accommodative monetary policy stance returns to normal levels," the central bank's report stated.
The report titled Macroeconomic and Monetary Developments: First Quarter Review 2009-10 will be announced on Tuesday, Jul 28.