Merchants’ Chamber of Commerce
While commenting on the Mid-Quarter Monetary Policy Review by RBI which has raised interest rate for the eighth time since last March, Shri Sudesh Sonthalia, President, Merchants’ Chamber of Commerce felt that further increase in Repo and Reverse-Repo Rates by 0.25 basis points would lead to an increase in costs for all sectors, as this would harden the lending rates further. The Apex Bank has increased the rates with a view to taming the inflationary spiral which has spread from food to fuel and to manufacturing products.
Shri Sonthalia expressed his anxiety on the inflationary spiral and said that by calibrating the policy rates only demand-side problems cannot be solved. He expressed apprehension that it might act adversely on the supply- side also and the demand-supply mismatch would widen further.