RBI focusing on taming inflation to help sustainable growth: ASSOCHAM

The Reserve Bank of India's decision to keep the benchmark interest rates unchanged is on the expected lines, said Associated Chambers of Commerce and Industry of India (ASSOCHAM) after RBI concluded its three day Monetary Policy Committee (MPC) meeting, adding that the focus of the monetary policy is clearly on further taming inflation for a stable growth.

Earlier today, RBI left its repo rate unchanged at 6.5 percent for the second consecutive meeting.

''While the Monetary Policy Committee remains focused on withdrawal of accommodation to further rein in inflation, we are co nfident that the RBI would ensure that adequate liquidity is maintained in the banking system and credit growth remains robust,'' said ASSOCHAM Secretary General Deepak Sood.


He said, assessment as reflected in RBI Governor Shaktikanta Das' statement, gives clear signals of revival in the investment sentiment despite global headwinds.

Das had earlier said, MPC will continue to take policy actions promptly and appropriately to keep inflation expectations firmly anchored. He also added, Domestic demand condition remains supportive of growth; rural demand on revival path.
''As demand remains robust, investment intentions and even implementation across different sectors like hospitality, chemicals, infrastructure and automobiles, are visible. However, capital cost would remain a key factor for a real boost to new investment,” Sood said.

“Price stability coupled with push to growth are the twin catalysts for maintaining the momentum in the Indian economy. While RBI has projected GDP growth of 6.5 per cent for the FY'24, we may be in for a positive surprise for higher expansion if Monsoon is normal and well spread in the next three months,” Sood added.