‘Rate hike not to impact inflation in short-term’

Ahead of the Reserve Bank’s mid-year credit policy review on Tuesday,a senior Plan panel member has said the Reserve Bank of India’s interest-rate rises are likely to affect inflation only “in the long term”. Pronab Sen,principal adviser to the Planning Commission,said: “On inflation,it (rate hike by RBI) will not have much impact in the short term. Rate hikes are aimed a bringing down inflationary pressures in the long term.” He also said the rate hikes were unlikely to affect economic growth.