<h1>RBI Executive Director Explores Impact of Interest Rate Changes on India's Investment and Economic Growth Dynamics.</h1> The speech by an executive director of the Reserve Bank of India discusses the impact of interest rate changes on economic activity, particularly investment and growth. Over the past decade, India's monetary policy has undergone various phases, responding to growth-inflation dynamics and external financial crises. The speech highlights the complexities of monetary policy transmission in India, emphasizing that changes in policy rates affect market rates and ultimately influence investment decisions. Despite reduced real interest rates post-crisis, investment growth has slowed due to non-monetary factors affecting the marginal efficiency of capital. The Reserve Bank aims to balance growth and inflation while addressing external risks.