Industry bodies unhappy with repo rate hike

The Bangalore Chamber of Industry and Commerce (BCIC) expressed  unhappiness over the RBI’s decision to increase the repo rate by 25 basis points.

BCIC said that the RBI continues to remain focused on inflation and said it will look to unwind liquidity tightening measures even outside of policy reviews. The Chamber, however, welcomed the RBI’s decision to ease the pressure on liquidity in the banking system by cutting the Marginal Standing Facility (MSF) rates by 75 basis points from 10.25 per cent to 9.5 per cent with immediate effect and also the reduction of minimum daily maintenance of the CRR from 99 per cent of the requirement to 95 per cent.

The Federation of Karnataka Chambers of Commerce and Industry said that the changes from the RBI’s end in this edition of the monetary policy have sent mixed signals to investors and industry.