-Indian central bank sees no relationship between high interest rate and low growth.
Global Banking News - 08 June 2012
The central bank of India This article is about an Indian commercial bank. For India's central bank, see Reserve Bank of India.
Central Bank of India is one of the oldest and largest commercial banks in India. has said that it did not see a relationship between low growth and a high interest rate.
The deputy governor of the Indian central bank, K C Chakrabarty, said that the nation's nine-year-low GDP GDP (guanosine diphosphate): see guanine. growth rate was primarily not due to high interest rates and added that a combination of factors had caused it.
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.'
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