CII disappointed with RBI's status quo on policy rates

Says, both growth, inflation dynamics currently call for accomodative monetary policy, instead RBI has taken a cautious stand

Confederation of Indian Industries (CII) is disappointed with Reserve Bank of India's monetary policy stance.

Earlier today, RBI kept policy rate unchanged at 7.25% and cash reserve ratio (CRR) at 4%.
    
Chandrajit Banerjee, director general, CII said “the decision of the RBI to hold policy rates on status quo is disappointing."

"At a time when both growth and inflation dynamics call for an accommodative monetary policy, the RBI has taken a cautious approach of attending to the prospect of a possible resurgence in inflation over reviving growth in the economy”,  he added.
 
CII statement further said that, "the quarterly GDP figures point towards a poor health of the economy even while industrial slowdown has not bottomed out and sluggish private and government capital expenditure is hurting investment in industry and economy."

"In such a situation CII is looking at the RBI for interventions which would improve the cost and availability of credit to industry" chamber added.

"Inflation is on a downward trajectory and core inflation, which reflects demand side pressures on the economy, has dipped to more than  three year low.

 CII also said that it hopes that the RBI would not wait for the next quarterly review but intervene sooner if the economic condition warrants a mid-course correction.