RBI Firm On 7.2% Growth Outlook

Mumbai: After opting for a status quo for the tenth consecutive policy review, Governor Shaktikanta Das on Wednesday said Reserve Bank’s elevated rates are not impinging on growth.

He pointed to the strong economic activity over the last 18 months since the RBI has opted for the status quo to back up his claim.

“At the moment, we do not see any evidence of higher interest rates impinging on growth,” the Governor told reporters in the customary post-policy interaction. He added that growth continues to be very robust and investment intentions are quite visible.

“The growth is holding firm, holding steady. So, it would not be correct at this point of time to say that interest rates are impinging on growth,” he added. India’s GDP expanded by 8.2 per cent in FY24, and the RBI is sticking to its higher-than-consensus estimate of 7.2 per cent for FY25.