New Delhi: Among fears of slowdown and declining business confidence, industry body Ficci today asked the Reserve Bank of India (RBI) to cut key policy rates in its impending mid-quarterly review of credit policy.
The RBI has raised interest rates 11 times since March 2010 by 475 basis points to broken inflation, which is hovering over 9 per cent. RBI’s next mid-quarter monetary policy review is scheduled for September 16.
Ficci said that there is now an increasing anxiety that the government may miss the fiscal deficit target of 4.6 per cent for the year 2011-2012.
On Duty Entitlement Passbook (DEPB) plan, it said that the withdrawal of the well-liked tax benefit scheme may act as a deterrent for exporters after September.
Throughout the April-July period, exports grew by 53.98 per cent to USD 108.34 billion from USD 70.36 billion during the corresponding period previous year.