RBI Keeps Policy Rate Steady, Das Says Growth Remains Strong

Mumbai, Oct 9 (PTI) 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.