Interest rate hike to hit investment, say India Inc
Tuesday, 03 May 2011, 23:42 IST
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New Delhi: Disappointed with RBI's strong signal of interest rate hikes, a large section of India Inc today said the upward revision in key rates in the credit policy will dampen the investment environment. "This is certainly a very hawkish monetary stand and one which would make the investment environment more difficult. We are afraid that with growth slowing down, employment targets will not be achieved and this could generate greater social pressure," Ficci Director General Rajiv Kumar said. CII too said that increase in repo rate (lending rate) by 50 basis points by RBI would have an adverse impact on investments and growth. "The continued monetary tightening without any movement on structural reforms to address supply side bottlenecks will have an added impact on capacity creation and expansion," chamber's Director General Chandrajit Banerjee said.
Source: PTI
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