Ahead of the Reserve Bank's mid-term review of monetary policy this month-end, apex industry chambers CII and FICCI have sought reduction in interest rates to sustain economic growth.
A snap poll of CEOs conducted by CII revealed that high interest rates are a cause for concern and majority expected a reduction. “The snap poll revealed that 69 pc of the CEOs expected the interest rates to be lowered to about 12 per cent (Prime Lending Rate) from the current level of 13.25 per cent,” CII statement said.
The RBI is scheduled to announce its policy review on October 30 and is expected by the industry to relax the monetary stance, as inflation is in control. CII said India would need investment rates in excess of 36 per cent of GDP to achieve 10 per cent growth in medium term, which is important to increase per capita income and reduce income inequalities.
Citing needs
Similarly, FICCI has urged the RBI to unveil a softer interest rate regime to spur credit growth. The chamber’s review of the credit needs of some important sectors revealed that agriculture, food processing and home loans were some of the areas which required special attention of the regulator.
