Statement by Sanjiv Bajaj, President, CII on Monetary Policy (April 2023)

Commenting on the RBI’s monetary policy announcement, Mr Sanjiv Bajaj, President, CII, said “We strongly welcome the RBI’s move to decouple from the global tightening cycle and pause interest rate hike, which is in line with what CII had been advocating for long now. We agree with the Central Bank’s observation that the lagged impact of the past rate hikes should be allowed to percolate into the system, and not stifle demand by further rate hikes. Though the domestic demand impulses remain healthy, the headwinds from the global banking stress have gained pace, hence it was important for the Central Bank to remain cautious in its stance. This move by the RBI will help to bolster business sentiments by containing the rise in borrowing costs which have constricted the pricing power of firms”.

6 April 2023

New Delhi