Lower interest rates may not be enough to stimulate growth-cbank official
MUMBAI Aug 23 (Reuters) - 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 percent in July, the fastest pace in five months, mainly driven by higher food prices and costlier imports. (Reporting by Shamik Paul; Editing by Prateek Chatterjee)