FICCI says interest rates will go up
Posted on: 23/Jul/2013 12:25:30 PM
According to the Federation of Indian Chambers of Commerce and Industry’s President Naina Lal Kidwai, the RBi’s monetary policy is unlikely to result in lowered interest rates. Ms. Kidwai was speaking at the FICCI’s National Executive Council Meeting on Monday at Bangalore.
‘Our hope of a cut is down even though the RBI has managed to keep inflation and (slide of the) rupee in check. In fact, our fear is of rates going up… Since the fuel bill accounts for the biggest share of our current account deficit, and since the current account deficit is seriously out of control, we absolutely welcome the increase in gas prices… From the country’s standpoint, a realistic price-point for domestically produced gas is a necessity. The logjam (over prices) was caused by the way the contracts were signed in the first place. The interesting thing is that at this price (of gas), solar power suddenly becomes a workable proposition’, she said.
