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Chamber disappointed for not affecting bank rate reduction
Coimbatore, May 20: The local chapter of Indian Chamber of Commerce and Industry today expressed disappointment over the absence of any announcement in RBI`s monetary and credit policy, effecting the reduction in the bank rate, in line with global trends.
Coimbatore, May 20: The local chapter of Indian
Chamber of Commerce and Industry today expressed
disappointment over the absence of any announcement in RBI's
monetary and credit policy, effecting the reduction in the
bank rate, in line with global trends.
The economic outlook for 2004-05, presented by RBI was
very much in line with the expectation of trade and industry.
However, in view of current liquidity available with banks,
there was no announcement to help the revival of industrial
activity, chamber president, A Shaktivel said in a statement.
The decision in maintaining the bank rate and REPO rate
unchanged at six and 4.5 per cent respectively, was a welcome
step, he said.
It appeared that the overall direction of the monetary
policy was aimed at providing adequate liquidity to meet
credit growth and support investment and export demand, while
keeping a close watch on movements in price level, he said.
Stating that the measures taken for improving the credit
delivery to agriculture, small and medium enterprises and
infrastructure were steps in the right direction, Shaktivel
however, said that one had to wait and watch closely the
inflationary situation.
Bureau Report
Bureau Report