The Centre's gross borrowings rose marginally to Rs 64,030 crore (Rs 640.30 billion) till July 12 as compared to the year-ago period level, according to PNB Gilts, which said the Resurgent India Bond redemption might not put pressure on the forex and domestic money markets.

"The expected pressure on the forex and domestic money markets on account of RIB redemptions in October is not likely to materialise in view of adequate forex purchases by the Reserve Bank of India in the forward market," PNB Gilts said in its latest review.

With the gross mop up of Rs 64,030 crore so far, against Rs 64,028 crore (Rs 640.28 billion) in the corresponding period in 2002-03, the government has completed 38.5 per cent of the budgeted borrowings of Rs 1,66,230 crore (Rs 1,662.30 billion) in this year, PNB Gilts said on Tuesday.

With redemptions at Rs 17,315 crore (Rs 173.15 billion) till July 12, the net borrowings stood at Rs 46,715 crore (Rs 467.15 billion), it said.

The net borrowings so far comprised 43.6 per cent of the budgeted mop up of Rs 1,07,194 crore (Rs 1,071.94 billion) for the current fiscal.

Redemptions were up by over 19 per cent in the period in review from Rs 14,517 crore (Rs 145.17 billion) in the corresponding period in 2002-03, it said.

Noting the recent spurt in inflation, PNB Gilts said it was mainly due to the hardening of prices of primary articles and "(inflation) is expected to ease in the near future."

Interestingly, till July 12, the Centre's borrowings through government securities stood at Rs 56,000 crore (Rs 560 billion), which was the same in the corresponding period in 2002-03.

On the interest rates in the economy, it said the stable regime with soft bias would continue.