RBI’s stand disappoints India Inc

New Delhi: India Inc. on Tuesday expressed its disappointment on the decision of RBI not to cut interest rates to give a boost to the industry.

 

“The decision of Central Bank to keep the policy rate unchanged is disappointing for the industry. Given that the industrial growth still remains volatile and demand conditions have not seen much improvement, there is a need to give policy stimuli to encourage demand and investments,” said Jyotsna Suri, president, FICCI.

 

CII said that the policy of frontloading the interest rate cuts should have been allowed to continue as this would have sent a strong signal that the RBI is aggressively addressing the growth risks in the economy accruing from weak demand conditions which are holding back investments. 

 

“India Inc. is surely disappointed with the RBI not announcing any cut in the policy interest rates, which have become one of the biggest drags on the balance sheets of  firms,” said Assocham.