Economic growth to slow if RBI hikes rates: Finance secy Somanathan

India's economic growth rate is likely to slow if the central bank hikes interest rates, finance secretary T V Somanathan told CNBC TV18 on Thursday.

The Reserve Bank of India is likely to raise its inflation projection for the current fiscal year at its June monetary policy meeting and will consider more interest rate hikes, a source said on Wednesday.

The central bank hiked its repo rate by 40 basis points (bps) to 4.40 per cent following an emergency meeting earlier this month.