Amid fears of slowdown and declining business confidence, industry body Ficci today asked the

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Reserve Bank of India (RBI) to cut key policy rates in its forthcoming mid-quarterly review of credit policy.

"A cut in interest rates at this juncture would boost corporate India's confidence, including exporters, which has taken a hit," the chamber said in its 'Economy Watch'.

The RBI has raised interest rates 11 times since March 2010 by 475 basis points to tame inflation, which is hovering over 9 per cent.

RBI's next mid-quarter monetary policy review is scheduled for September 16.

Ficci said that there is now an increasing apprehension that the government may miss the fiscal deficit target of 4.6 per cent for the year 2011-2012.

On Duty Entitlement Passbook (DEPB) scheme, it said that the withdrawal of the popular tax benefit scheme may act as a disincentive for exporters after September.

During the April-July period, exports grew by 53.98 per cent to $108.34 billion from $70.36 billion during the corresponding period previous year.