India Inc today said the RBI's decision to keep policy rates unchanged was on expected lines, even as it hoped the central bank would soon cut interest to boost demand and spur investments in the country.
While the Reserve Bank of India has maintained status quo in current monetary policy statement, we hope that it will soon consider a cut in policy rate and give a further boost to demand and investments, Ficci President Rashesh Shah said.
He said while the economy is seeing signs of recovery, support is needed from all quarters to translate this into a firm recovery, adding that this was critical for pushing investments, growth and job creation.
Shah said the inflation and growth projections for 2018-19 do provide optimism for a rate cut in forthcoming monetary policy decisions.
Assocham President Sandeep Jajodia said, "The RBI has rightly flagged certain issues like the impact of MSP (minimum support price) revision on the prices and possible fiscal slippages at both the Centre and the states."
Engineering exporters' body EEPC India Chairman Ravi Sehgal said, "While RBI's decision to keep the interest rates unchanged was largely expected, given the concerns on inflation, exporters are finding it tough to compete in the global market, faced with high cost of borrowing along with increasing prices of raw material like steel."
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