Merchants’ Chamber of Commerce & Industry (MCCI) on Wednesday said the RBI Monetary Policy Committee has taken the right step by increasing the repo rate by 25 basis points (bps) and this could act as a reversal to the rising inflation.
Mr.Namit Bajoria, President, MCCI, commenting on the RBI policy decision said, in the context of the current global economic situation increasing the repo rate by 25 bps will likely create a balance between growth and inflation. As the supply side situation witnesses an improvement, inflation should gradually drop. .
Fiscal prudence dovetailed with a government commitment to remain steady on its capital expenditure, as pronounced in the Union Budget, give us confidence to share the optimism of the RBI projecting a growth rate of 6.4% in the next financial year. In the last 10 months, the repo rate has been hiked by cumulative 250 bps and the short-term money market rates have moved up by over 300 bps. Mr. Bajoria welcomed the expansion of Trade Receivables Discounting System (TReDS) since it would immensely help the MSMEs.
