Industry feels
disappointed with unchanged key policy rates by RBI in its first
monetary policy review. This move will definitely slow down the growth
momentum further, said the Associated Chambers of Commerce and Industry
of India (ASSOCHAM).
The continuation of the hawkish policy instance by RBI to rein in high inflation and dwindling growth across all sectors is not a right step in the current scenario of falling growth rates. However, it has put further pressure on the government to bring in the long pending reforms and mend its policy on fiscal consolidation, said D S Rawat, Secretary General, ASSOCHAM.
“Reduction in SLR by 100 bps is a positive move to free liquidity with banks with concerns of high cost of lending continues to hit fresh investments”, said Rawat.
While cutting its growth forecast and lifting its inflation outlook as economic conditions deteriorate RBI appears to be in no mood to buy the industry demand for a rate cut immediately. Headline inflation has persisted even as demand has moderated and the pricing power of corporates weakened, adds ASSOCHAM.
The continuation of the hawkish policy instance by RBI to rein in high inflation and dwindling growth across all sectors is not a right step in the current scenario of falling growth rates. However, it has put further pressure on the government to bring in the long pending reforms and mend its policy on fiscal consolidation, said D S Rawat, Secretary General, ASSOCHAM.
“Reduction in SLR by 100 bps is a positive move to free liquidity with banks with concerns of high cost of lending continues to hit fresh investments”, said Rawat.
While cutting its growth forecast and lifting its inflation outlook as economic conditions deteriorate RBI appears to be in no mood to buy the industry demand for a rate cut immediately. Headline inflation has persisted even as demand has moderated and the pricing power of corporates weakened, adds ASSOCHAM.
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