The Deputy Governor of Reserve Bank of India (RBI) K. C. Chakrabarty on Friday sought to stave off criticism that the nine-year low Gross Domestic Product (GDP) growth was mainly due to high interest rate regime, saying it was driven by a host of other factors.
At the SKOCH summit in Mumbai Mr. Chakrabarty said “I don’t think that the interest rates are that high, or our policy rates are that high that should significantly affect growth. Growth is being affected for a variety of reasons. We are overplaying the interest rate aspect (for low growth). It may be one of the reasons”.