Inflation not a major worry at this juncture: PHDCCI

A day after RBI raised the key interest rate by 25 basis points, industry body PHD Chamber of Commerce today said inflation should not be a major worry at this juncture as domestic reforms and good monsoon behaviour would address the impact of external shocks.

In a statement, PHD Chamber President Anil Khaitan urged the banking sector to hold the pass through effect of the 25 basis points hike in repo rate, saying the banks have a good space to absorb it.

We believe that the funding requirements of the industry especially the MSMEs are not impacted due to the marginal hike of 25 basis points in repo rate by RBI yesterday, he said.

However, the chamber said it looks forward to softer policy stance to continue to strengthen the industry growth further and boost overall economic growth trajectory.