Global economy still fragile, says RBI

.............With mixed bag of policy actions from different central banks of large economies across the world RBI observed that country growth trajectories appeared to be de-coupling. While in US the revised GDP estimates for July-September of 2012 indicated a pick-up in growth, Euro area growth contracted for a second successive quarter. In Japan too, GDP growth tapered in the same quarter. "Lead indicators point to a modest firming up in the momentum of global growth over the rest of 2012 and in 2013 if there is firm policy action in the euro area and the US. The biggest risk to the outlook stems from political economy considerations that could impede, delay or erode resolute policy action," RBI said..........

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