India central bank deputy sees no steep fall in rates

Long-term interest rates in India are unlikely to come down drastically as the economy needs to raise its savings rate to sustain a growth rate of 8 percent, a designated deputy governor of the central bank said. India's high savings rate of 35 percent is seen by the government as a key factor in restoring growth rates of 8-9 percent even if the global economy does not pick up.
The economy grew 6.7 percent in the year to March 31, the slowest in six years, a pace below the nine percent or more expansion witnessed in the past few years. But Kamalesh Chandra Chakrabarty, who will join the Reserve Bank of India on Monday, said on Saturday the current savings rate were not enough to sustain the high levels of growth.