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“Credit growth has been at an all-time high of 19% growth rate. I think it will continue to be strong. A few percentage points here and there should not matter too much in the overall scheme of things. It will continue to support growth,” Governor Sanjay Malhotra told reporters after the policy announcement. The RBI raised the repo rate to 5.5%, its first increase since February 2023, to address rising inflation. Higher rates could temper demand for new loans, though the effect will take time to work through the banking system. The RBI also raised its FY27 economic growth forecast to 7.1%, citing resilient consumption and investment. Also red: RBI MPC Key Takeaways 2026: Repo rate hiked to 5.50%, FY27 GDP growth forecast raised to 7.1% Non-food bank credit grew 18.8% year-on-year in the fortnight ended August 31, against 10.2% a year earlier, RBI data showed. Lending to the services sector rose 24.3%, up from 10.3%, supported by credit to non-banking finance companies, trade, professional services and commercial real estate. Industrial credit grew 18.2%, compared with 7% a year earlier. Deputy Governor S Janakiraman said any slowdown should be viewed against the longer-term trend. “If you take a long-term average of 10 years, it is seen in the range of 12–14%, which is very sustainable and very supportive of growth,” he said. “As these rates transmit, it typically takes about a couple of quarters for transmission to materialise. Some moderation will occur relating to demand as well as rate. But moderation from 18–20% is not bad and will be adequate enough to support growth,” Janakiraman said. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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