Rate hike will depress growth sentiment: FICCI

Mumbai, Jun 12: Reacting to the increase in the repo rate by the RBI, Federation of Indian Chambers of Commerce and Industry (FICCI) today said that the rate increased by the Reserve Bank will further depress the growth sentiments.

FICCI said in a statement today that interest rate hike at this juncture is not advisable particularly, when the tightening monetary policy stance of the RBI has had an adverse impact on industrial growth. The 25 basis point increase in the repo rate was not unexpected as inflationary pressures were building up and inflation had touched 8.24 per cent for the week ending May 24, 2008.

However, interest rate hike at this juncture is not advisable particularly, when the tightening monetary policy stance of the RBI has had an adverse impact on industrial growth, FICCI added.

UNI