Industrialists hail RBI's 25 basis points repo rate cut.
'Acche din' could be finally here for India Inc as the Reserve Bank of India (RBI) cut repo rate by 25 basis points on Thursday early morning.
Rana Kapoor, President ASSOCHAM, said, “This move will brings cheer for industry, economy as whole and for the common man”. He further said, "The move is in line with industry expectations and would help to revive growth and encourage investment. RBI views that any further cut in rate would depend upon further moderation of food inflation and current account deficit is well acknowledged."
Index of industrial production and eight core sectors that are the backbone of the Indian economy rebounded sharply. If this trend of industrial growth and rising demand sustains, it could lead to quick and stronger revival of economic growth, creating more jobs, putting more money in people’s pockets, added ASSOCHAM Chief.
Kavi Arora, MD & CEO Religare Finvest Limited, said, "The rate cut will help boost confidence and push economic growth as banks and other lending institutions are likely to pass on this reduction to customers by way of lower loan rates. This in our view is possibly the beginning of more such cuts during the remaining part of the year."
Chandrajit Banerjee, Director General, CII said that the 25 bps reduction in repo rate has come as a positive surprise in the new year and would be a huge mood lifter for investors who have been grappling with subdued demand conditions. "Even though symbolic, would send a strong signal down the line that both the government and the RBI are acting in concert to harness demand and take the economy to a higher orbit of growth," he said, adding, "A rate cut would propel investment demand, spur spending in rate sensitive consumer durables and given a fillip to construction activity."
"Going forward, CII hopes that while maintaining a delicate balance between growth and inflation, the RBI would shift its stance in favour of growth, given that the trend in inflation is clearly subdued. CII would call for a further cut in policy rates by at least 25 basis points in the forthcoming monetary policy," added Mr Banerjee.
Finance Minister Arun Jaitley hailed the decision of RBI to cut the interest rate, saying it is positive for the Indian economy and will certainly help in reviving the investment cycle the government is trying to restore.
"The RBI decision to cut the interest rate will lead to more money in the hands of the consumer for greater spending. It is positive for the Indian economy and it will certainly help in reviving the investment cycle the government is trying to restore," said Jaitley who has been nudging the central bank to ease the interest rate to lower the cost of capital.
The Associated Chamber of commerce and industry of India (ASSOCHAM) has applauded the monetary authority for correctly assessing the need of the industry and announcing a rate cut of 0.25%.
Dr. Jyotsna Suri, President, FICCI said, “We welcome RBI’s move to cut repo rate by 25 bps, ahead of the monetary policy meeting. FICCI has been advocating for a rate cut, as cost of finance is an important factor for giving boost to the industrial sector, which has been under stress for a long time now. This measure will help in improving the investor sentiment. FICCI hopes that this will be the beginning of further cuts in the policy rate by the Central Bank, and will enable its transmission into lower lending rates by the Banks.”
(with agencies)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}