Rate hikes may slow down India growth: WB

The World Bank today said the rise in interest rates and oil prices is likely to slow down India's economic growth for the next few years.

"Rise in interest rates will very much affect India's economic growth for the next few years," World Bank Country Director Michael F Carter said today.

High global oil prices are likely to affect the global growth rate as well as the Indian economy.

He added that internal factors may help India, to some extent, to offset the negative impact of interest rates and oil prices.

Carter said high fiscal deficit is also likely to inhibit long-term growth, and the government has taken the right initiative of gradually reducing it.