Industry and commerce bodies on Tuesday expressed concern over the hike in repo and reverse repo rates by the Reserve Bank of India fearing that it would affect the growth prospects of the industrial sector. Stressing that industrial production had registered a sharp decline to 2.7 per cent, Federation of Indian Chambers of Commerce and Industry Secretary General Amit Mitra said that successive tightening of the monetary policy would force banks to raise lending rates given the tight liquidity situation and that would affect industry's growth path. Confederation of Indian Industry Director General Chandrajit Banerjee apprehended that the RBI action would trigger a spate of rise in interest rates negatively impacting the investment momentum.
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