 "Inflationary pressure seems to be the main concern of RBI Governor: P K Ghose, Tata Chemicals")
The RBI Governor has aimed to calibrate the monetary policy to reflect realities in both developed and emerging economies; especially after the US Federal Reserve’s decision to hold-off tapering which will provide relief to the Rupee, said P K Ghose, Executive Director and CFO, Tata Chemicals, in his first reaction to RBI’s mid-quarter monetary policy review for 2013-14.
Raghuram Rajan, Governor, RBI, has hiked the repo rate by 25 basis points to 7.5%, while reducing the Marginal Standing Facility (MSF) rate by 75 basis points to 9.5%. The reverse repo rate stands adjusted at 6.5%.
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Ghose added, “Inflationary pressure seems to be the main concern of the Governor, but we can expect this to ease in the long-run owing to good monsoons and a bumper kharif crop. The main area of concern for the industry is the external sector which will remain volatile due to oil prices and reduced demand from global markets. For manufacturing to recover appreciably, the government needs to address structural issues in the economy. Some steps have been taken in the recent past and hopefully we will see their impact soon.”
Raghuram Rajan, Governor, RBI, has hiked the repo rate by 25 basis points to 7.5%, while reducing the Marginal Standing Facility (MSF) rate by 75 basis points to 9.5%. The reverse repo rate stands adjusted at 6.5%.
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Ghose added, “Inflationary pressure seems to be the main concern of the Governor, but we can expect this to ease in the long-run owing to good monsoons and a bumper kharif crop. The main area of concern for the industry is the external sector which will remain volatile due to oil prices and reduced demand from global markets. For manufacturing to recover appreciably, the government needs to address structural issues in the economy. Some steps have been taken in the recent past and hopefully we will see their impact soon.”