{
  "id": 12622648,
  "title": "Credit growth may ease after rate hike but remain strong: RBI",
  "url": "https://urgent.news/2026/10/07/credit-growth-may-ease-after-rate-hike-but-remain-strong-rbi",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T11:34:19.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/indicators/credit-growth-may-ease-after-rate-hike-but-remain-strong-rbi/articleshow/134764820.cms"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India recently raised its repo rate by 25 basis points, marking the first increase since February 2023, in an effort to curb rising inflation. Reserve Bank Governor Sanjay Malhotra expressed confidence that despite the rate hike, bank credit growth would remain robust at around 19%, stating that a few percentage points would not significantly impact overall growth. The RBI also upgraded its FY27 economic growth forecast to 7.1%, citing strong consumer demand and investment.\n\nNon-food bank lending expanded 18.8% year-on-year in the week leading up to August 31, compared to 10.2% in the previous year. Lending to the services sector surged 24.3%, driven by a rise in credit to non-banking finance companies, trade, professional services, and commercial real estate. Industrial credit grew 18.2%, up from 7% a year earlier.\n\nRBI Deputy Governor S Janakiraman emphasized that any slowdown in credit growth should be viewed within the context of a longer-term trend, with an average of 12-14% over the past decade, which he deemed sustainable and supportive of growth. He added that it typically takes two quarters for the effects of rate changes to fully materialize, so a modest moderation in credit growth from 18-20% should still be adequate to support economic growth.",
  "summary": "The Reserve Bank of India projects a moderation in bank credit growth from the current 19% level. This expected slowdown results from a recent repo rate increase implemented to manage rising inflation. Despite the decrease, it is anticipated that growth will remain strong enough to support overall economic activity. Lending to sectors like services and industry shows significant year-on-year…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Hindu BusinessLine",
        "title": "RBI rate hike pulls markets lower",
        "url": "https://urgent.news/2026/10/07/rbi-rate-hike-pulls-markets-lower",
        "published": "2026-10-07T12:59:25.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}