Mumbai: The Reserve Bank's recent hikes in its repo rates and the cash reserve ratio for banks have had the desired impact on liquidity and has in no way impacted corporate investment, ICICI Bank chief executive K V Kamath said.

While inflation and high commodity prices, including rising input costs and soaring crude prices remain a challenge, the investment climate has remained strong, Kamath pointed out.

High interest rates might have slowed consumer credit growth, but corporate credit off-take remained strong, he said.

The RBI raised interest rates twice in June by a total of 75 basis points and increased the proportion of deposits that banks must keep in reserve by 50 basis points to calm a double-digit inflation.

"I think our challenge is inflation at this point of time, and commodity prices. What is insulating us, is this huge pipeline of investment," Kamath said.

The RBI is expected to continue its tight money policy despite sluggish industrial output growth, which fell to its lowest in six years in May.