RBI's move to keep interest rates low to boost business confidence: India Inc

PHDCCI President Sanjay Aggarwal said the central bank maintained the status quo, despite the high inflation stoked by a few products.

New Delhi: The Reserve Bank of India's decision to keep key interest rates unchanged and maintain an accommodative monetary policy stance will boost the confidence of businesses and consumers, India Inc said on Friday. The central bank on Friday expectedly kept interest rates unchanged at a record low of 4 per cent, as it chose to support economic revival over inflation. It also maintained an accommodative stance as the economy is yet to recover from the impact of the second COVID wave. PHDCCI President Sanjay Aggarwal said the central bank maintained the status quo, despite the high inflation stoked by a few products. "Continuation of an accommodative stance to revive and sustain the economic growth trajectory amid the impact of COVID-19 will boost the confidence of business and consumers. It is encouraging that RBI has retained the projection for GDP growth at 9.5 per cent for FY2022 in the difficult time caused by the pandemic," Aggarwal said.