While displaying dissatisfaction over the RBI’s move to keep the interest rates unchanged, India Inc has stated that the rate cuts were required so that it helps the industrial sector invest more and also boost the economic growth.
RN Dhoot, President of ASSOCHAM, said, said, “Industry is dissatisfied with the RBI’s decision to keep interest rates unchanged as it was really needed, given the lower industrial production in the last few quarters.”
After having already lowering CRR by 0.75 percentage points last week, the Central Bank has maintained its policy rates unchanged today.
Repo or the short term lending rate of the RBI now touched 8.5%. The reverse repo rate under the LAF have been unchanged at 7.5 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.5%.
The RBI also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.75%.
