October 27, 2009, New Delhi /IndiaPRLine.com/ The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has described the Monetary Policy of the Reserve Bank of India (RBI) on expected lines which will strike a fine balance between growth and inflation.

In a statement, its President, Dr. Swati Piramal said that all growth drivers have been kept intact since the bank did not tinker with its existing repo rate, reverse repo rate and cash reserve ratio.

This is also indicative of the fact that RBI has set it’s mood to review the ongoing  interest rate regime in view of inflationary expectations in its next quarterly review policy, pointed out Dr. Piramal.

She, however, added that by effecting a modest increase of 1% in statutory liquidity ratio (SLR) to 25%,  the RBI has also expressed its intention for putting a tab on growing inflationary pressures.

The ASSOCHAM Chief also said that provisioning requirement to commercial and real estate sector has been increased from 0.40% to 1% for standard assets is also a proactive step by RBI in view of large funding to this sector by commercial banks.

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