"He is the most competent, ultimate leader, who is fit to be the Prime Minister of the country. He is the real leader of the Congress party," he told reporters at a business event here over the weekend.
Rahul was someone the country, especially the youth needed at the moment, Moily said.
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The Congress president had said after the Assembly election results that the party will name its candidate for PM's post at "opportune time".
There is speculation that Rahul may be announced as its candidate for the top job at the AICC session on January 17.
When reminded about the drubbing Congress received in the Assembly polls in four states under Rahul's stewardship, Moily said, "Congress won in Karnataka, Himachal Pradesh and Uttarakahnd because of Rahul Gandhi only.
"Victories and defeats are all part of the electoral politics...Sometimes we may win, some time we may lose.
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