CII asks RBI to slow down interest rate hikes

28 Nov 2022 , 09:57 AM

In light of difficulties brought on by global headwinds, the Confederation of Indian Industry (CII) requested on Sunday that the Reserve Bank of India take into account slowing the pace of its monetary tightening before the upcoming monetary policy review.

The business group stated in a statement that the RBI “should consider slowing the pace of its monetary tightening from the earlier 50 basis points” given the obstacles to the domestic economy that are mostly caused by global concerns.

On December 5—7, the Monetary Policy Committee (MPC) will convene.

A number of high-frequency indicators are performing well, which is consistent with CII’s assessment that domestic demand is making a strong recovery. However, India’s development potential may also be impacted by the current global “polycrisis.”

Although the corporate sector has begun to experience the negative effects of RBI’s 190 basis point interest rate increases so far, this fiscal year, the CII is aware that these increases were necessary to quell inflationary pressures.

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