‘Rate hike to hit subdued investments’

Hike in the key interest rate by RBI will hit the already weak investment momentum and impact India’s growth,India Inc said.

“This has disappointed the industry especially as the investment climate continues to be weak and growth outlook remains muted as a high interest rate regime deters consumption and investment demand,” CII director general Chandrajit Banerjee said.

“Industry is certainly disappointed over the increase in repo rate. The kind of inflation we are witnessing in India is more of a supply side phenomenon. While raising interest rates would have little impact on such inflation,it will certainly penalise Indian industry that is already in the midst of a slowdown,” Ficci secretary general Didar Singh said.