RBI could have reduced key rates: India Inc
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Last Updated: Tuesday, July 28, 2009, 19:57
  
New Delhi: Describing the RBI's credit policy review as maintenance of status-quo, India Inc on Tuesday said reduction in policy rates at this stage would have helped in boosting economic growth.

"There are signs of revival in business confidence and some reduction in policy rates at this stage would have helped to provide fillip to corporate investment and thereby boosting economic growth," Ficci President Harsh Pati Singhania said.

The RBI in its credit policy has kept unchanged all the key policy rates and ratios like bank rate, repo and reverse repo rates and cash reserve ratio.

PHD chamber President Satish Bagrodia also held similar views, "RBI could have considered reducing the repo rate to 4.5 per cent and reverse repo rate to 3 per cent to facilitate reduction in lending rates by banks."

While, Ficci said the projected growth rate for the current fiscal should have been in the range of 6-6.5 percent. The RBI has forecast a growth rate of 6 per cent with upward bias.

CII Director General C Banerjee said that GDP growth is likely to exceed the RBI's expectation of six per cent in the current fiscal. "In fact the economy could grow at around 7 per cent, as the fiscal and monetary measures have impact on domestic demand," he said.

Commenting on the central bank's policy Assocham President Sajjan Jindal expressed hope that the RBI would continue to follow accommodative monetary policy to ensure sufficient credit flow to the industry.

Bureau Report


First Published: Tuesday, July 28, 2009, 19:57


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