High policy rate not impinging on growth, economic activity well sustained: Das

Mumbai, Oct 9: 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.

India recorded a growth rate of 8.2 per cent and is estimated to grow at 7.2 per cent during the current fiscal. During the first quarter of the current fiscal, India logged a growth rate of 6.7 per cent.

In August policy also, RBI had projected the real GDP growth at 7.2 per cent for the fiscal.

Das further said that the deposit rates will move in tandem with the repo rate and they respond to the monetary policy.

Can’t say if the deposit rates have peaked, these are commercial decisions to be taken by the banks or NBFCs, he said.

Going forward, Das said, the decision on policy rate will be determined by growth-inflation dynamics. (PTI)

Hot this week

Meghalaya man missing in Bangkok

Shillong, Jan 10: A 57-year-old Meghalaya resident, Mr. Treactchell...

Pay hike of Assam ministers, MLAs likely as 3-member panel submits report

Full report likely by Oct 30 Guwahati Sept 25: There...

ANSAM rejects Kuki’s separate administration demand, says bifurcation not acceptable

Guwahati, Sept 8: Rejecting the separate administration demand of...

Meghalaya Biological Park Inaugurated After 25 Years: A New Chapter in Conservation and Education

Shillong, Nov 28: Though it took nearly 25 years...

Meghalaya’s historic fiber paves the way for eco-friendly products and sustainable livelihoods

By Roopak Goswami Shillong, Oct 25: From making earbuds to...

Pahalgam Terror Attack: A Threat to Kashmir’s Peace and Progress

By Dipak Kurmi On a seemingly tranquil Tuesday morning, the...

Encounter breaks out in J-K’s Bandipora

Srinagar, Apr 25: Two security forces personnel were injured...

Landslides leave 1,000 tourists stranded in North Sikkim

Gangtok, Apr 25: Around 1,000 tourists were stranded in...

India issues notification on holding Indus Water Treaty in abeyance

New Delhi, Apr 25: India has formally issued a...

Demand for checkpoints at Shella

Shillong, Apr 25: The Hynniewtrep Youth Council (HYC) on...

Conrad bats for robotics, AI to turn Meghalaya into tech hub of NE

Shillong, Apr 25: Utilising robotics and AI in farming...

First Empathy Art festival held at Laitkor

Shillong, Apr 25: Project Empathy and Assam Rifles Public...
spot_img

Related Articles

Popular Categories

spot_imgspot_img