AEPC disappointed with RBI mid-quarter monetary policy review

The Apparel Export Promotion Council, representing industry bodies in apparel and textile sector, on Tuesday said it is "disappointed" with the Reserve Bank mid-quarter monetary policy review.

The apex bank today kept the key interest rates unchanged but hinted at easing rates in January stating that with decline in inflation, the focus of monetary policy would shift to the task of removing impediments to growth.

Overlooking demands of the industry and the bankers, RBI left the short-term lending (repo) rate and Cash Reserve Ratio (CRR) unchanged at 8 per cent and 4.25 per cent.

"Entire textiles and garment industry is disappointed. The unchanged interest rate is leading to a high cost of credit.

The other input costs due to high inflationary prices is adding to our woes. The job generating textiles sector needs softer loans to survive and grow", AEPC Chairman A Sakthivel said.

"..by not reducing credit rates, exports may not reach the target. This may consequently impact the foreign exchange earnings and job losses may continue in the entire value chain", he said.

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