Merchants' Chamber of Commerce
Commenting on the first mid-quarterly review of monetary policy by the Reserve Bank of India, Shri S.S. Beriwala, President, Merchants' Chamber of Commerce has expressed concern over the increase in its lending rate (Repo rate) by 0.25 percentage point to 6.0 p.c. and its borrowing rate (Reverse Repo rate) by a larger-than-expected 0.50 percentage point to 5.0 percentage. He feels that while the focus of RBI is correctly on taming inflation now running at double digits, its policy stance has the potential to push up interest rates and lead to cost-push inflation. The SMEs, Housing Sector and even individuals may come up for higher cost of borrowing, he says.