In a surprise move, the Reserve Bank of India (RBI) on Wednesday kept repo rate unchanged at 6.25 percent dashing hopes of reduced borrowing costs. Credit should be given to RBI’s Monetary Policy Committee decision to stand pat on rates, said HDFC Chairman Deepak Parekh.
Parekh told CNBC-TV18 that demonetisation is causing some short term disruptions, but is game changing event for the economy.
Parekh is now betting on Union Budget to revive the consumption story. He said that these are difficult times and expects the Finance Ministry to introduce sops for industry as well for the individuals. Also, he said business confidence has been hurt more due to dumping by China, and not so much by demonetisation.
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