Tamil Nadu - Madurai   

Move to hike rates will affect growth: Chamber

MADURAI: The Tamil Nadu Chamber of Commerce and Industry has expressed apprehension that industrial growth would be affected by the Reserve Bank of India's (RBI) move to increase repo-rates by 25 basis points to 7.50 per cent.

In a statement issued here, chamber president N. Jegatheesan said that the apex bank had hiked the repo rate since March 201 at regular intervals with the stated aim of containing the inflation. However, these moves were resulting in increases in lending rates of banks thereby reducing the money circulation. This was causing much discomfiture to the public, trade and industry. The TN chamber was of the opinion that rise in commodity prices was mainly caused by a mismatch between supply and demand and this could not be resolved through interest rate hikes.

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