[ Date : 2010 Nov 2 ]
The Indian Chamber of Commerce and Industry, Coimbatore expresses deep concern on the hike in both repo and reverse repo rate by 25 basis points by Reserve Bank of India. This is an indication that interest rates may firm up in commercial banks in the coming months and it is feared that this move will impact the consumption demand going forward and will actively impact the interest sensitive sectors like consumer durables, auto and on housing demand and real estate sector.
The Cash Reserve Ratio (CRR) being unchanged is a good thing in general and particularly for the industry.
However, our Chamber welcomes the announcement of RBI on coming up with a discussion paper related to deregulation of savings bank deposits, new bank licences, road map on foreign banks etc.
- M. Krishnan, President