Former RBI Governor C Rangarajan has said that he expects that the economy will grow at 6.5 per cent for the year 2017-18.
Commenting on the issue, RBI Governor C Rangarajan told the media, "Jobs (jobs creation) are not independent. They are related to growth when the economy grows jobs also grow. So you cannot talk off jobs separately from growth."
"I think the possibility is that the growth will pick up in the next few quarters and one doesn't know by and one doesn't know by by how much.. Perhaps by the year as a whole my own estimation is the economy may grow at 6.5 per cent," he added.
"Decision to lower the interest rates or not depends upon the overall liquidity in the economy and the expectations of the Reserve Bank regarding the behavioural inflation. Therefore apparently the latest decision (of not changing the benchmark lending rates) has been taken because they probably think that the inflation behaviour just not warrant a reduction in the interest rate," he further said.