India Inc wants RBI to go slow on interest rate hikes

Wednesday 22nd March 2023 06:03 EDT

India Inc is pressing the RBI to hold off on rate increases as borrowing prices rise. According to information made public by the trade group Ficci, the average interest rate grew by one percentage point to roughly 9.4% during the most recent quarter, with the maximum rate of borrowing set at 15%.
RBI data showed the weighted average lending rate (WALR) for fresh rupee loans had increased by 135 basis points (100bps = 1 percentage point) between May and November, while for outstanding loans it was 71bps. “Primacy must be given to growth and a case can be made out to consider decoupling from the Fed approach and look at what works for India,” Ficci president Subhrakant Panda told the media.
 "In other industries, like the housing business, consumers are obtaining loans with interest rates that are floating for a very long time; as a result, their EMIs have increased. We have by and large come on interest rate at pre-Covid level. This is a conducive rate for investment, but if they start going up significantly, it will act as a damper,” Sanjiv Bajaj, the head of financial services company Bajaj Finserv told the media.

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