New Delhi : ASSOCHAM expects the RBI Monetary Policy Committee to keep the policy REPO rate unchanged when it shares the outcome of its meeting tomorrow, giving the present state of the macro-economic situation along with a hint of future interest rates trajectory, chamber Secretary General Mr Deepak Sood said today.
” It looks like a pause situation when it comes to policy interest rates, given some pressure in prices of food articles which we expect should abate in the next few months. Besides, the global macro picture also may work as a key factor to keep the rates unchanged,” Mr Sood said. He said, the global headwinds remain challenging , though the RBI has so far navigated the monetary policy with prudence and pragmatism.
The ASSOCHAM assessment emphasises the importance of a nimble supply side management as the festive season sets in with a further pickup in demand across different sectors. The response has been rather encouraging with the result that on a comparative scale India’s growth-inflation trade off looks stable.
”Both the RBI and the government have been responding to the unfolding situation with agility in supply side management. The approach would also ensure a sustainable GDP growth of over six per cent for the Indian economy at a time when several major economies of the world are battling slowdown.”
Mr Sood said India has also witnessed stability in the foreign exchange market, helped by revival of inflows in the equity market by the global investors while the country remains amongst the preferred choices for the foreign direct investment.
