Reaction From Mr. Harsh Pati Singhania – MD, JK Paper Ltd

"Industry is disappointed that RBI hiked Repo rate by 25 basis points again (12th hike in 18 months) to 8.25% in its Mid-Quarter review, despite clear signs of slow down. Business & Industry is already adversely impacted by this slow down and prevailing high interest rates. Any additional rise in Bank's lending rates will lead to further slow down and deferment of much needed investments for growth of the economy. I don't believe that increase in policy rates will resolve the inflation problem.

RBI perhaps should reconsider its hawkish stand and look for some other alternatives / tools to tackle the dilemma of taming inflation without hurting growth. It is also time to look at fiscal policy solutions rather than rely on monetary policy alone."

Source : Equity Bulls

Keywords