Wednesday, April 19 2006 15:31 Hrs (IST) - World Time -

Coimbatore: Welcoming RBI's credit policy, the local chapter of the Indian Chamber of Commerce and Industry, today (Apr 19, 2006) appreciated the focus on credit quality and financial market conditions for maintaining macroeconomic, in particular, financial stability.

Unchanged bank rate, reverse repo rate, repo rate, CRR, monetary and interest rate environment enabling growth momentum consistent with price stabliity, were all positive measures of the policy and would encourage the Corporate sector further, Chamber president, A Shaktivel said in a statement here.

"The policy was aimed at bringing liquidity back into the system and would work towards benign interest of the industry," he said.

The Slack season credit policy has finely balanced the objectives of stablising inflationary expectations, maintaining growth momentum and market making, the chamber said. However, it appealed to the RBI to consider reduction in the interest for export based units at Prime Lending Rate.

Increase in the interest rates on rupee deposits by non-residents and export credit in foreign currency was expected to bring in more liquidity in the system by absorbing more foreign exchange, Shaktivel said.