monetary policy committee

The domestic demand has shown a better recovery following the performance of a host of high-frequency indicators. RBI should consider moderating the pace of its monetary tightening from the earlier 50 basis points, said the Confederation of Indian Industry

The Reserve Bank of India (RBI) has been asked by the Confederation of Indian Industry (CII) to consider moderation in the pace of its monetary tightening ahead of the forthcoming monetary policy review. It cited challenges coming from global headwinds, on 27 November.

The industry body in a statement, said “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 Monetary Policy Committee (MPC) will hold meet from 5 to 7 December.

The domestic demand has shown a better recovery following the performance of a host of high-frequency indicators. However, the prevailing global ‘polycrisis’ is may leave an impact on growth prospects of India too, according to CII.

While CII is aware of interest rate hikes by RBI of 190 basis points so far in the current fiscal, that have been warranted to soften inflationary pressures. The corporates to have now started feeling its adverse impact, it said.