"Given this situation and the concerns over inflation, RBI could have maintained the repo rate at the current level even if the case for a downward revision was not acceptable as per its own analysis," Naina Lal Kidwai said in a statement.
Expressing displeasure over RBI action, Kidwai said the hike in the repo rate to hurt industrial activity as it continues to remain sluggish and even consumption demand is now starting to weaken in the economy. In such a scenario, a positive signal by way of a cut in the repo rate, which FICCI has been advocating for long, would have helped perk up sentiments, she added.
"High interest rate has been identified as a major barrier to boosting growth by various FICCI studies and surveys. Entrepreneurs are holding on to their investment plans pending any relaxation in monetary policy by the RBI," she said.
"In short while industry is disappointed, reduction of interest rates charged and availability of credit remain a plea and we are confident RBI will keep this in their sights going forward", added Kidwai.
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