The shorter barrel shouldn't have a detrimental effect on accuracy. If the trigger is good, you should be able to get 1 1/4 - 1 1/2 inch 3 shot groups at 100 yards or better with factory loads. Handloads will reduce group size.
At least that has been my experience with my 7x57 No.1 RSI. Handloads will do 3/4" or better depending on the shooter.