Mumbai/IBNS: The Confederation of Indian Industry (CII) wants the Reserve Bank of India (RBI) to consider moderating the pace of its monetary tightening from the earlier 50 basis points given the challenges emanating from global uncertainties.
On the domestic demand front, CII said that it was recovering well as reflected by many high-frequency indicators, as per an ET report.
The industry body on Sunday said while it is in cognisance of the fact that RBI’s interest rate hikes of 190 basis points so far in this fiscal have been warranted to tame inflationary pressures, the corporate sector has now started to feel its adverse impact.
"CII’s analysis of results for 2,000 odd companies in the second quarter (July-Sept 2022) shows that both the top-line and bottom-line have moderated on sequential and annual basis. Thus, moderation in pace of monetary tightening is the need of the hour," a statement from CII said.
However, given the sticky core inflation at around the six percent mark, the RBI could consider hiking the key interest rates by an additional 25 to 35 basis points to tame inflation, it said.