Rate hike not to impact inflation in short-term

Ahead of the Reserve Banks mid-year credit policy review,a senior Plan panel member has said the Reserve Bank of Indias interest-rate rises

Written by Express News Service
New Delhi | October 25, 2011 12:54 AM IST

1 min read

Ahead of the Reserve Banks mid-year credit policy review on Tuesday,a senior Plan panel member has said the Reserve Bank of Indias 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.