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Lower interest rates may not stimulate growth: RBI

business Updated: Aug 23, 2013 13:54 IST

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 India's central bank, 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 p in July, the fastest pace in five months, mainly driven by higher food prices and costlier imports.