Money & Banking

'RBI move to restore growth momentum'

Anjana Chandramouly Bangalore | Updated on January 24, 2012

The Bangalore Chamber of Industry and Commerce (BCIC) welcomed the Reserve Bank of India’s monetary policy to cut 50 basis points in CRR, which is expected to infuse Rs 32,000 crore into the system easing the tight liquidity situation in the country.

Welcoming the change, Mr H.V. Harish, Vice-President, BCIC, said, "This CRR cut should bring liquidity back into the system and also bring down costs for industry and hopefully restore the growth momentum which has been lost."

He also expected the policy to drive down inflation with lower cost of interest. "We also expect industry to look at capital investment again and that should provide a boost to the capex equipment makers and to the investment climate,” he said in a press release.

Mr N. Venkatakrishnan, Chairman of the Banking and Finance Expert Committee of the Chamber, said: “The RBI has taken a timely step to respond to economic realities and help kick-start activities. The monies released into the banking system will help cool interest rates which is pro-industry measure”.

Published on January 24, 2012

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