Home / Knowledge / News / Finance Ministry defends REPO rate hike
Finance Ministry defends REPO rate hike
26
Jun '08
Last Friday, Ministry of Finance had indicated that the monetary authorities were expected to take action on the demand side to moderate inflation and quell inflationary expectations.

Reserve Bank of India has hiked the REPO rate by 50 basis points and the CRR by 50 basis points (in two stages). These steps are expected to have a salutary effect.

These steps are necessary in the face of rising inflation due to relentless increase in crude oil prices. On June 20, the trading day preceding the Jeddah meeting, crude oil price on the NYMEX was US$134.63 per barrel. This morning, it is US$136.80 per barrel.

On the positive side, as Minister of Agriculture has noted, we have very satisfactory stocks of wheat and rice; adequate supplies will be provided to the PDS; and stocks will be sold in the open market, when necessary, to restrain prices.

As the RBI's statement points out, demand is still high (non-food credit growth was 26.2 per cent as on June 6, 2008); there is a reasonable supply-demand balance; there is improvement in domestic agricultural performance; the external sector is strong and resilient with modest current account deficits; and the level of foreign exchange reserves is comfortable.

The objective of the RBI is to moderate and manage aggregate demand. The intention is to achieve the objective while ensuring that the prospects for overall economic growth remain positive.

The policy stance adopted by the RBI should boost the confidence of investors both domestic and foreign, and augur well for economic growth.

Press Information Bureau Government of India


Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X