MUMBAI (Reuters) - The Reserve Bank of India (RBI) might not increase its key lending rate further as it will impact growth, the Business Standard newspaper reported on Monday quoting Finance Minister Pranab Mukherjee.
"As far as tightening monetary policy is concerned, if these policies need to be extended, then it will have some impact on overall growth scenario. But I am optimistic that it will not have to be extended," the paper quoted Mukherjee as saying in Kolkata.
However, it wasn't possible at the current juncture to ease the tightening, the report quoted him as saying.
The RBI's next rate setting meet is scheduled on Sept 16.
Mukherjee said food inflation would settle at 6-7 percent by the end of the current financial year in March, according to the report.
India's food price index rose 10.05 percent, its highest in nearly six months, and the fuel price index climbed 12.55 percent in the year to Aug. 20.
Gross domestic product growth in Asia's third-largest economy slipped to 7.7 percent in the three months through June, slightly exceeding the median forecast in a Reuters poll for an annual rise of 7.6 percent.
(Reporting by Shamik Paul; Editing by Subhadip Sircar)
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