Lower real or nominal interest rates may not be enough to stimulate growth when non-monetary factors impede revival in growth, Deepak Mohanty, executive director at RBI, said on Friday.
The negative impact of increase in policy rate is first felt on output before moderating impact on inflation, he said in a speech.
India's headline inflation accelerated to 5.79 per cent in July, the fastest pace in five months, mainly driven by higher food prices and costlier imports.
Copyright: Thomson Reuters 2013
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