Crr Hike To Be Absorbed By Bank To Sustain Growth : A. Sakthivel, President, Fieo
Commenting on the third quarterly review of monetary policy by the Reserve Bank of India, Shri A Sakthivel, President, Federation of Indian Export Organisations (FIEO) said that hike in the cash reserve ratio by 75 basis pointraising it from 5% to 5.75% is higher than what the industry and exporters expected.Shri Sakthivel added that banks should absorb the hike without increasing the interest rates which otherwise will impact the economic growth.Interest rates in India, said FIEO President,are much above the international benchmark for any MSME exporters and increase in prime lending rate consequent to hike in CRR, if it happens, will give a jolt to exports which have turned positive from last two months as growth in advance economy will remain sluggish due to higher employment levels, increase in fiscal deficit and continued credit crunch.
Source:http://fieo.org/view_Press_Releases_detail.php?lang=0&id=0,21&dcd=485&did=1264754634e2dpjgceuijhds0nebec3cvjq7
