The Hindu Business Line : `Repo rate hike targets inflation'

With a 25 basis points increase in the repo rate, the Reserve Bank of India has a sent a strong signal of its hawkish position on combating inflation, the Confederation of Indian Industry, Coimbatore, has said. Given the liquidity situation, the rise in repo rate would have the desired impact and help reduce headline inflation hovering around 6 per cent, the Chairman of CII, Coimbatore, Mr Jayakumar Ramdass, has said in a statement. Reacting to the RBI's annual monetary policy review, he noted that the upward revision in the GDP growth prospects to 8.5-9 per cent for 2006-07 would be found encouraging by the industry. Coming on the day when the Central Statistical Organisation has revised the GDP growth figures for 2005-06 to 9 per cent, this has sent the feeling that the country is moving to the next stage of its growth trajectory.

More Stories on : Credit Policy | Economy | Industry Associations | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Andhra Bank opens 5 ATMs

`Rate hike will not affect growth'

`Repo rate hike targets inflation'

Mixed reaction from industry

Provisioning dents City Union net

Finacle, Flexcube in Magic Quadrant

ICICI Pru `priority' branch in Kochi

`Labour welfare schemes must be enforced'

Cabinet okays Govt buying SBI stake

SBH opens centralised process centre

IOB powered by performance

Corus is a good buy for the Tatas: StanChart CEO

Hardening rates are here to stay

Karnataka Bank lowers NRE, FCNR rates

SBI Life gets new CEO