Assocham President Ajay Singh appeals to RBI not to increase interest rates

RBI MPC Meeting: RBI’s Monetary Policy Committee will announce the results of the first review meeting of the financial year 2023-24 after a three-day meeting on 6 April. It is being speculated that RBI may increase the repo rate by a quarter of a percent. But before that, Ajay Singh, the new President of Business Chamber Assocham, has appealed to the RBI not to increase interest rates further. In view of the current global business situation, he has demanded a ban on increasing interest rates from the Monetary Policy Committee.

Ajay Singh said that among the major economies of the world, India is the fastest growing economy. Fast growth in the economy is when the global crisis is being seen. Fluctuations are being seen in energy prices and there is a possibility of recession in the world’s big economy countries. He said that in view of this, Assocham is in favor of putting an end to increasing interest rates further. Sectors like automobile and real estate need a signal that interest rates are coming down. Otherwise, the difficulties of these sectors may increase.

He said that it is being speculated that the repo rate can be increased by 25 basis points. But we believe that the downturn in the economy is at such a level that it may be difficult to withstand any hike in interest rates from here. Assocham said that capital expenditure cannot be accelerated only by large-scale public investment and private sector participation is necessary to increase investment in the country’s economy. Prime Minister Narendra Modi Last month, the industry was urged to accelerate investment in line with the government’s decision to increase capital expenditure and take advantage of the opportunities presented in the Union Budget 2023-24.

On 6 April 2023, RBI will announce the results of the meeting of the Monetary Policy Committee. Earlier, RBI has increased the repo rate from 4 per cent to 6.50 per cent in six phases. That is, in less than a year, the repo rate has been increased by 2.50 percent.

read this also

Pakistan Hikes Interest Rates: Pakistan’s central bank made loans more expensive to curb backbreaking inflation, interest rate increased to 21%