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