Trade off between growth and inflation well balanced

The Federation of Indian Export Organisations (FIEO) while commenting on the Monetary Policy Review (2nd quarter) stated that the status quo in policy rates was as anticipated but for the restoration of the SLR by 1%.

For the MSME export sector, the transmission mechanism for the credit sector needs to be improved. The federation is of the opinion that any change in policy rates will not be of help to them. The reason that the federation cited for this is that the margins of the banks are already under pressure due to successive lending cuts & high cost deposits.

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