highlights
The Indian industry is feeling the adverse effect of the increase in interest rates in the past.
“RBI should consider reducing the pace of monetary tightening from the earlier 0.5 percent.”
To deal with rising inflation, the Reserve Bank has increased interest rates rapidly this year.
New Delhi. In order to control the rising inflation, the Reserve Bank of India has announced a continuous increase in interest rates in the last few months and its effect is being seen on the economy. The Confederation of Indian Industry (CII) said on Sunday that the Indian industry is feeling the adverse effect of the increase in interest rates in the past.
CII has requested the Reserve Bank of India (RBI) to reduce the rate of interest rate hike. RBI has increased the repo rate by 1.9 percent so far in the current financial year. The meeting of the monetary policy committee of the central bank will be held in the first week of December to consider the interest rate.
decrease in profits of companies
According to CII’s analysis, a large number of companies have reported a decline in income and profits in the second quarter (July-September 2022) of the current financial year. In such a situation, CII argued that there is a need to soften the strictness of monetary policy. According to CII, the figures show that there is a trend of improvement in domestic demand. However, the global slowdown may also have an impact on India’s growth prospects.
The industry body said, “The RBI should consider reducing the pace of its monetary tightening from the earlier 0.5 per cent to sustain domestic growth amid global uncertainties.”
Central banks around the world raised interest rates
Let us tell you that in order to control the increasing rate of inflation in the world, the Central Banks of the world, including the US Federal Reserve, have increased the interest rates rapidly. Due to the increase in inflation and interest rate, other economies of the world including Europe and America have been affected.
Due to the double whammy of inflation and rising interest rates, the threat of recession has started increasing on the economy of Europe and America. Many economists have warned that the global economy may be in the grip of recession by next year.
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Tags: RBI, rbi policy, Recession
FIRST PUBLISHED : November 27, 2022, 17:16 IST
