Rise in inflation should not come in the way of the rate cuts: India Inc

Rise in inflation should not come in the way of the rate cut
India Inc has asked the Reserve Bank to cut interest rates saying food prices will fall with the arrival of kharif crops in October, even as inflation rose for the fourth straight month to 6.46 per cent in September, reported PTI.

"The rise in inflation should not come in the way of the forthcoming policy of monetary easing by the RBI as the arrival of kharif crop in October would provide some relief in food prices," CII Director General Chandrajit Banerjee said.

Moreover, it is of utmost importance to shore up flagging investor sentiment which has been adversely affected by high interest rates, he added.

"We believe, to revive the industrial growth prospects, government should cut the policy rates. Rate cut will be inevitable to facilitate industrial production process and to gain in the international markets by enhancing exports scenario further," President of PHD Chamber of Commerce Suman Jyoti Khaitan said.

As per data released by the government today, food inflation stood at 18.40 per cent in September. The food prices had shot up 18.18 per cent in the previous month.

Dion Global Solutions Ltd.

Story first published: Tuesday, October 15, 2013, 9:00 [IST]
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