New Delhi: Assocham has complimented the RBI Governor for presenting a balanced credit policy to contain inflation, bring in sound financial management and projecting a realistic GDP growth of 8.5% for 2007-08.
According to their membership which comprises large and mid sized companies, the policy lays greater emphasis on price stability while aiming to contain inflation at 5% in current fiscal.
The prescription given in the policy for pre-payment of ECBs without prior RBI approvals with a limit to $400 million (Rs has been welcomed as also the decision to increase capital account transaction from $50,000 to $1 lakh per financial year.
However, the chamber expressed hope that RBI at an appropriate time would review its decision to suitably readjust bank rate, reverse repo rate so that cost of money and cost of borrowings to corporates do not become a problem and inflationary trends arising out of it are duly contained.
The Chamber has also complimented the RBI for its decision to set up a working group that can go into all the relevant issues relating to interest rates and derivatives while suggesting measures to facilitate the development of interest rate futures markets and advising the premier bank to accept its recommendations without indulging in any tampering.