KOLKATA, Jan 30 (PTI): The city’s industry chambers feared that the sharp spurt in inflation in recent months may not be contained by the hike in CRR by the Reserve Bank of India on Friday.
“With the increase in CRR about Rs 36,000 crore of excess liquidity has been removed from the system, which may not ultimately be able to contain inflation at the desired rate,” Bharat Chamber of Commerce president Pavan Poddar said in his reaction.
RBI raised CRR of scheduled banks by 75 basis points from 5 per cent to 5.75 per cent in two stages in the third quarter review of the monetary policy on Friday to suck excess liquidity and control inflation.
He said RBI had sought to maintain an interest rate environment consistent with price and financial stability and keeping this in view the bank rate, repo and reverse repo rates were left unchanged.
Bengal National Chamber of Commerce and Industry criticising the RBI move said “For managing recovery from the present sluggish state, our economy desperately needs flow of liberal credit to the productive sectors.”
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