Date:19/04/2006 URL: http://www.thehindubusinessline.com/2006/04/19/stories/2006041904270700.htm

Back Pro-growth, says CII

Our Bureau

MR Y.C. DEVESHWAR

New Delhi, April 18

Describing the Annual Policy Statement of the RBI, released on Tuesday, as growth oriented, CII President Mr Y.C. Deveshwar commended the bank for keeping the interest rates unchanged.The chamber observed that the unchanged Repo and Reverse Repo rates would ensure a pro-growth liquidity situation for the industry. However, it felt that the RBI could have considered a reduction in the Cash Reserve Ratio (CRR) in line with its stated objective to gradually bring it down to three per centCII also expressed happiness that the RBI had taken cognisance of the inflationary pressures on the economy and hoped that the inflation would not cross 5.5 per cent in the near future .