Inflation to slow down to 5.5% by March 2011: Bhatt

India’s inflation rate would slow down to between 5.5 per cent and 6.5 per cent by March 2011, State Bank of India (SBI) chairman O P Bhatt said here today. “Technically, inflation should come down,” said Bhatt, citing strong economic growths, backed by improving performances by all economic sectors.

India’s current inflation rate hovers around 10 per cent. Bhatt was speaking to the Singapore banking and financial community, giving an update on the Indian economy and SBI plans’.

He expressed confidence about stronger Indian economic growth in the coming years, driven by will-power and determination of the young Indian population, consumer spending and infrastructure investments.

Bhatt also said that the rural economic expansion was already taking place, with wide ranging micro-financing schemes supporting revenue generating avenues and enterprises for the villagers. “As such, SBI is expanding its rural network through mobile-banking and cell-phone links,” said Bhatt.