New Delhi, Oct. 5 (ANI): Director General of Confederation of Indian Industry (CII), Chandrajit Banerjee has welcomed the cut in the Cash Reserve Ratio (CRR) announced by the Reserve Bank of India (RBI).
"Additional liquidity in the system would help the current situation, where availability and cost of credit have been a challenge, particularly for the SMEs. However, given the slew of reform measures announced by the Government, including the ones aimed at fiscal consolidation, CII had hoped that the RBI would also move in favour of growth and cut repo rates," a CII press release quoted Banerjee, as saying in a statement.
"Demand pressures according to RBI have eased and therefore, a cut in headline rates is a reasonable expectation from the Central Bank," he added.
According to the press release, CII appreciated RBI's concerns "on the supply side bottlenecks and rupee depreciation adding to the inflationary pressure."
CII urged the Government "to implement measures such as removing the Perishables from the APMC list, uniform implementation of APMC Act and announcing investment incentives "for post harvest agri infrastructure to address the supply side constraints in agriculture sector which have been exerting pressure on food inflation," the press release said.
CII also shared the concern with RBI "on the fluctuating international oil prices and suggests that a separate window be created out of the foreign exchanges reserves to fund the Petroleum imports by the OMCs directly," the press relase added. (ANI)
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