"I do not think it's the end of the tunnel. It is not. It does not happen (so)," he said when asked if RBI is going to end the cycle of interest rate rises.
RBI yesterday walked its key short-term lending and borrowing rates by 50 basis points to contain inflation, which is close to double digit mark.
Rate hike by the Reserve Bank yesterday, since 11 March 2010, has provoked strong reactions from the industry who said that the decision would harm investment and pull down growth.
When asked if surprised by the growth of 50 basis points in interest rates by the Reserve Bank of India, Mukherjee said: "I can not say I was surprised. There is no doubt significant, but because the situation was necessary. "
The decision of the RBI is likely that the lending banks, auto and expensive, and many have indicated that they would increase their lending and deposit rates in response to the increase announced by the central bank.
Of course, the inflation rate was 9.4 percent in the month of June was a "reasonably high and unacceptable," Mukherjee said that the global phenomenon, and the whole world reeling under the impact of price fuel and other raw materials.
The government and central bank takes steps to check price rise, he said, adding: "I am optimistic that the measures taken by the RBI through the rate adjustment will have a major impact and lower inflation."