Mumbai: The Reserve Bank of India (RBI) should stop hiking the key lending rate in view of the current uncertainties in the global business environment, Assocham President and SpiceJet CEO Ajay Singh said on Tuesday.
Addressing his first press conference after taking over as the President of the industry body, Singh urged RBIs Monetary Policy Committee to end its long streak of rate hikes.
The first meeting of the committee in FY24 started on April 3 and will continue till April 5. RBIs rate-setting panel comes together bi-monthly to decide on measures to manage the macroeconomic indicators.
There are suggestions from some quarters about another 25 bps increase in the repo rate by the RBI Monetary Policy. However, the economy has reached a saturation point beyond which it may be difficult to absorb any more rate hikes, he said.
According to him, industries that are sensitive to interest rates, such as real estate (including residential complexes), passenger cars, and commercial vehicles, may experience adverse effects as a result of the rate hike.
