Corporate India welcomes RBI’s status quo monetary policy

Corporate India welcomes RBI’s status quo monetary policy

New Delhi: Corporate India is happy over the RBI’s decision to focus on growth rather than tightening the monetary policy in view of inflationary fears in today’s quarterly policy review.

“It is heartening to note that the RBI has chosen growth over monetary tightening and inflationary fears," Ficci president Harsh Pati Singhania said in a statement while expressing hope that the policy will continue to ensure credit availability at the right cost.

It is prudent to retain the monetary stimulus provided a few months ago which along with the fiscal stimulus has helped in economic revival of the Indian economy, CII director general Chandrajit Banerjee said.

The RBI’s stance of not tinkering with the key policy rates -- CRR, repo and reverse repo -- was welcomed by corporate India too.

“This (keeping key rates intact) is also indicative of the fact that RBI has set its mood to review the ongoing interest rate regime in view of inflationary expectations in its next quarterly review policy," Assocham president Swati Piramal said.

Assocham further said the RBI’s decision to increase provisioning requirement, which has been hiked from 0.40% to 1% for standard assets, to commercial real estate sector is a proactive step by RBI in view of large funding to this sector by commercial banks.