Repo rate hike expected, RBI looking to minimize impact of rising inflation & support Rupee, Says FICCI

Commenting on today's repo rate hike by the RBI, Mr. Rashesh Shah, President, FICCI said, "Given the evolving inflation situation, the increase in the repo rate today by RBI was expected. By frontloading the interest rate hikes, the RBI is looking at minimizing the adverse impact of rising inflation on the economy as well as providing support to the Rupee. We hope that following this increase there will be stabilization of the interest rate regime. Moreover, it is very important for the Government and the RBI to work in tandem to rein in the inflationary pressures which are largely emanating from the supply side."

"The growth in industrial production index has shown an improvement in recent months, however, the underlying trend still reflects volatility. Also, while domestic investments have reported an uptick, these are yet to find a solid footing. As real interest rates in India continue to be on the higher side vis-a-vis some of our global counterparts, impacting the country's competitiveness, especially that of small and medium enterprises, we hope that the central bank would give greater attention to growth in the medium to long term", he added

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