Mukherjee Says ‘Abnormally’ High Rates Will Hurt India Growth

India’s economic growth may slow if interest rates are increased too fast, Finance Minister Pranab Mukherjee said, supporting the central bank’s strategy to boost borrowing costs in a “calibrated” way to cool inflation.

“If interest rates are hiked abnormally, naturally, there will be no investment, there will be no growth, there will be no job creation,” Mukherjee said in a debate on inflation in the lower house of Parliament in New Delhi today. “If I compromise my economic growth, I can surely control inflation.”