New Delhi: The Confederation of Indian Industry (CII) Sunday asked the Reserve Bank of India to consider moderating the pace of its monetary tightening ahead of the forthcoming monetary policy review, citing challenges emanating from global headwinds.
“Given the headwinds to domestic growth mainly emanating from the global uncertainties, the RBI should consider moderating the pace of its monetary tightening from the earlier 50 basis points,” the industry body said in a statement.
The Monetary Policy Committee (MPC) will meet December 5-7.
According to CII, domestic demand is recovering well as mirrored by the performance of a host of high-frequency indicators. However, the prevailing global ‘polycrisis’ is likely to impinge on India’s growth prospects too.
While CII is cognisant that RBI’s interest rate hikes of 190 basis points so far in this fiscal have been warranted to tame inflationary pressures, the corporate sector has now started to feel its adverse impact, it said.
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