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ICC disappointed over keeping bank rate unchanged

The local chapter of Indian Chamber of Commerce and Industry has expressed disappointment over the absence of any announcement effecting a reduction in bank rate in the monetary and the credit policy for the year 2003-2004.

Welcoming the decision to keep the cash reserve ratio (CRR) unchanged in the policy the chamber, in view of the current liquidity situation, the chamber however expressed disappointment that the policy left the bank rate unchanged at six per cent, its president Mr A Sakthivel said in a statement here. It appeared that the stance of monetary policies continued to be provision of adequate liquidity to meet the credit growth and support investment demand, with a vigil of a price level with preference for soft and flexible interest environment, he said. The measures announced to improve credit delivery to agriculture and small scale sectors were steps in the right direction, Mr Sakthivel said. In view of the tough global competition and comparatively poor infrastructure, the industry was hoping for further reduction in bank rate and CRR, which would help the growth of the economy, he said.