CII demands easing of interest rates and liquidity from RBI

At the pre-monetary policy meeting held by the RBI, Confederation of Indian Industry (CII) has sought easing of interest rates and liquidity and has suggested that the RBI sends out a signal in the forthcoming policy announcement that there would be no further tightening and the Central Bank would start to move to a more accommodative monetary stance.

The Industry body raised their demand at a meeting with RBI governor Raghuram Rajan, who is due to announce his first half-yearly monetary policy on October 29. CII has also suggested that a separate window be opened by RBI for SME financing to ensure the availability of credit at affordable rates to this important sector.

The apex association has also suggested that exports be provided priority sector lending status, at this time and asked the RBI to support the infrastructure sector through easing of norms. For this CII has suggested that the RBI consider forbearance for financing already made available to the infrastructure sector.

The other body Assocham had released a 10-point agenda and said that the central bank should consider normalising the monetary policy after a series of interest rate and liquidity tightening measures.