CII Urges RBI To Down Interest Rates: To control the rising inflation, the Reserve Bank of India has continuously increased the interest rates across the country. The effect of which is being seen on the economy. Along with this, the loans of the people are getting costlier and EMI is increasing. The same Confederation of Indian Industry (CII) says that the Indian industry is feeling the adverse effect of the increase in interest rates in the past.
meeting will be held in december
According to media reports, CII has requested the Reserve Bank of India (RBI) to reduce the rate of interest rate hike soon. So far in the current financial year, RBI has increased the repo rate by 1.9 percent. The effect of which has been seen directly on EMI. The meeting of the Monetary Policy Committee of the Central Bank is scheduled to be held in the first week of December 2022 to consider the interest rate.
What did CII demand from RBI
According to CII, a large number of companies have registered a decline in profits in the second quarter (July-September 2022) of the current financial year 2022-23. There is also a need for softening in the strictness of the monetary policy. There is a trend of improvement in domestic demand. The global slowdown can also have an impact on India’s growth prospects. The industry body said that in order to maintain domestic growth amid global uncertainties, the RBI should consider reducing the pace of its monetary tightening from the earlier 0.5 per cent.
Increased interest rates around the world
Let us tell you that in order to control the increasing pace of inflation worldwide, 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.