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RBI status quo a disappointment, says Adi Godrej
Godrej group chairman Adi Godrej says he is disappointed that the Reserve Bank of India didn't cut key interest rates in its mid-quarter monetary policy review on Friday.
Godrej group chairman Adi Godrej says he is disappointed that the Reserve Bank of India didn't cut key interest rates in its mid-quarter monetary policy review on Friday.
"I am a little disappointed. I would have preferred the RBI to both reduce the repo rate and the CRR. It is time monetary stimulus is provided to the economy. The economic growth is poor and this is the right time in my mind to start it," Godrej said on the sidelines of a trade fair organised by the Dalit Indian Chamber of Commerce and Industry.
India's industrial production slumped more than 5% in October from a year ago, far worse than expected and the first drop in more than two years, with capital goods output down 25.5%, according to government data released this week. However, inflation has stayed on the higher side, prompting the central bank to maintain status quo on interest rates in its review. It had raised interest rates 13 times since March 2010.
Thus cash reserve ratio [CRR] stays unchanged at 6%, repo rate at 8.5%, reverse repo at 7.5%, while SLR has been maintained at 24%.
Wholesale Price Index or WPI inflation was at 9.11% in November, lower than 9.73% in October, but higher than 8.2% a year ago, according to government data.
