Apprehending tightening of monetary policy by the Reserve Bank of India in its forthcoming annual credit policy, the industry chamber Assocham said that increasing interest rates will not help in containing inflation.
"The price and supply conditions may get worse if the RBI resorts to raising interest rates to control the spiralling inflation and the move would not only hurt the industry but also the consumers," said an Assocham Business Barometer, a quick survey of CEOs.
The RBI is slated to announce the annual credit policy on April 29 amids apprehension that the central bank would raise the benchmark interest rates to control inflation which has zoomed to 7 per cent, the highest level recorded during the past three years.
About 94 per cent of the 165 CEOs expressed their apprehensions that the RBI may find tightening interest rates as