High rates not hurting growth: RBI governor

Das says economy remains robust despite elevated interest

Reserve Bank Governor Shaktikanta Das on Wednesday said that elevated interest rate is not impacting growth and economic activities are well sustained.

“At the moment, we don’t see any evidence of higher interest rate impinging on growth. Growth continues to be very robust. Investment intentions are quite visible,” Das said during a post-policy media interaction here.

Earlier in the day, the RBI decided to keep the policy rate unchanged for the tenth time in a row but changed its stance to ‘neutral’ that may lead to a cut in the forthcoming policies.

“High rates have been there for more than one and half years now...(but) growth is holding firm and steady,” he said.

The RBI has maintained a status quo on benchmark interest rates since April 2023. The last hike in policy rate was done in February 2023 by 25 basis points to 6.5 per cent in February 2023. 

Experts: Move signals possible rate cut 

The RBI’s decision to change its stance to ‘neutral’ from ‘withdrawal of accommodation’ is significant, experts said. The RBI kept its key interest rate unchanged but took the first step towards a rate cut as it eased its relatively hawkish policy stance to neutral. The monetary policy committee, voted to keep repo rate - which governs interest rate of home, auto, corporate and other loans - at 6.5 per cent for a 10th straight policy meeting.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!