Auto, Consumer Durables Affected By Interest Rate Increase: CII

New Delhi: The recent cash reserve ratio and repo rate increase by the Reserve Bank of India and the consequent increase in interest rate by commercial banks have already taken its toll on the industry, according to the Confederation of Indian Industry. The automobile sector''s growth rate down to 0.8 per cent in March 2007 compared with 20.4 per cent in the corresponding month of the previous year. The growth figures for consumer durables for February 2007 stood at 1.6 per cent compared with 20.3 per cent last year. However, corporate earnings reported significant gains in the third quarter of just-concluded fiscal (2006-2007).