RBI should not increase interest rates sharply, industry demands from central bank

CII has requested the Reserve Bank of India (RBI) to reduce the rate of interest rate hike. The central bank has increased the repo rate by 1.9 per cent so far in the current financial year.

CII has requested the Reserve Bank of India (RBI) to reduce the rate of interest rate hike.

Image Credit source: Representational Image

Industry body Confederation of Indian Industry (CII) said on Sunday that the Indian industry is feeling the bad effects of the increase in interest rates in the past. Along with this, CII has requested the Reserve Bank of India (RBI) to reduce the pace of interest rate hike. The central bank has increased the repo rate by 1.9 per cent so far in the current financial year. The meeting of the monetary policy committee of the central bank will be held in the first week of December to consider the interest rate.

Industry organization gave this reason

According to CII’s analysis, a large number of companies have reported a decline in income and profits in the second quarter (July-September 2022) of the current financial year. In such a situation, CII argued that there is a need to reduce the pace of monetary tightening. According to CII, the figures show that there is a trend of improvement in domestic demand. However, the global slowdown may also have an impact on India’s growth prospects.

The industry body said that in order to maintain domestic growth amid global uncertainties, the RBI should consider reducing the pace of its monetary tightening from the earlier 0.5 per cent.

Let us tell you that due to the fears of recession in the economies of the world, pressure is being seen on the domestic economy. Looking at the global signals, institutions around the world are revising the growth estimates. The reason for this is the increase in rates by the central banks. Whose pressure is visible on the growth of the world and due to this there is pressure on the Indian economy as well. At present, the Reserve Bank has made it clear that controlling inflation is the biggest concern for it, that is why it is increasing the rates despite the fear of recession.

There is a policy review meeting of the Reserve Bank next month. If indications are to be believed then forget about the relief in the rates in the next policy review, there is a high possibility of further increase in the rates. Moody’s estimates that the Reserve Bank may further increase the repo rate by around 0.50 percent to control inflation and support the exchange rate.

read this also



(with language input)

Source link

Leave your vote

Related Articles

Back to top button

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.