Governor Raghuram Rajan, who will unveil the policy next Tuesday, is not expected to trim policy rates. (Agencies)
In fact some analysts have called for a 25 bps hike in the repo rate in the wake of inflation going up in the past few months.
In a 10-point recommendations made to the RBI, as part of the wider body pre-policy meeting with the Central Bank, Assocham called for the need to provide impetus for investments to revive growth in the infrastructure sector, while realty players called for some concessional rates for home loans.
Talking to reporters after the customary pre-policy meeting with the RBI brass, city-based builder Hiranandani group head Niranjan Hiranandani said he urged the central bankto provide some fillip to the housing market by way of some special rates for home loans.
Industry body Assocham demanded that the apex bank look at widening financial markets by developing the municipal bonds market for funding of urban infra projects.
The other demands from Assocham include liberalizing financial markets, availability of export credit, asset classifications and non-performing asset recognition, reduction in gold imports, amongst others.
Notably, the new RBI governor in his maiden policy last month unexpectedly increased the repo rate by 25 basis points to 7.50 percent to contain inflationary expectations.
Rajan, however, reduced the marginally standing facility (MSF) to 9 percent from 10.25 percent in two tranches. Rajan's predecessor D Subbarao on July 15 had raised the MSF rate to 10.25 percent to curb rupee's fall by tightening liquidity condition.
The market is not expecting an interest rate cut on October 29 as both retail and wholesale inflation have gone up since August.
Governor Raghuram Rajan, who will unveil the policy next Tuesday, is not expected to trim policy rates.