ASSOCHAM urges RBI to hold rates steady

New Delhi

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged the Reserve Bank of India (RBI) to maintain its current interest rates during the upcoming Monetary Policy Committee (MPC) meeting from April 7 to 9.

ASSOCHAM President Sanjay Nayar stated that the RBI should take a “wait and watch” approach instead of cutting rates immediately. He highlighted that the central bank had already injected liquidity through a 25-basis-point rate cut in its last policy decision. The industry body believes more time is needed to assess the impact of these measures on capital expenditure and consumer spending.

“A rate cut now could put pressure on the rupee, despite possibly increasing consumer borrowing,” Nayar said. He added that India’s economy remains strong and is expected to grow steadily in the next fiscal year.

ASSOCHAM projects India’s GDP growth at 6.7% for FY’26. It also expects retail inflation to stay under control due to stable global crude prices and easing geopolitical tensions.

The chamber acknowledged that previous RBI actions, such as liquidity measures and rate cuts, have helped boost demand in key sectors like housing, automobiles, and consumer durables. However, it advised the central bank to carefully monitor global challenges, including fluctuating oil prices and economic uncertainties, before making further policy changes.

ASSOCHAM remains confident that balanced fiscal and monetary policies will ensure economic stability and sustained growth in the coming months.