NEW DELHI: India Inc hopes that the banks will take a cue from RBI’s decision to cut repo rate and reverse repo rate by 50 basis points and make
more credit available in the market. Industry associations CII, Ficci and Assocham said RBI’s move to slash rates is a signal to banks to cut interest rates for both corporates and individual customers to boost spending.
“The central bank’s decision is on expected lines, although the RBI has kept room for further cuts. Both the government and the RBI have taken steps to infuse liquidity and this will help industry, especially the automobile and housing sectors,” said CII director general Chandrajit Banerjee. Asked if more rate cuts are in the offing, Mr Banerjee said further cut in repo and reverse repo rate is expected in the next quarter.
Ficci president Harsh Pati Singhania said the industry is waiting for a composite monetary stimulation package where reverse repo rate will be further pushed down to 3%. “We hope that this decision will help in bringing consumers back to the market by offering interest subvention and making housing, automobiles and white goods more affordable.”
Assocham thinks the cuts were anticipated, but the industry should not ask for further cuts henceforth. “Both large companies and SMEs are expected to benefit from the decision. We also hope that banks will make credit available to SMEs at 8% interest rate.”
“The central bank’s decision is on expected lines, although the RBI has kept room for further cuts. Both the government and the RBI have taken steps to infuse liquidity and this will help industry, especially the automobile and housing sectors,” said CII director general Chandrajit Banerjee. Asked if more rate cuts are in the offing, Mr Banerjee said further cut in repo and reverse repo rate is expected in the next quarter.
Ficci president Harsh Pati Singhania said the industry is waiting for a composite monetary stimulation package where reverse repo rate will be further pushed down to 3%. “We hope that this decision will help in bringing consumers back to the market by offering interest subvention and making housing, automobiles and white goods more affordable.”
Assocham thinks the cuts were anticipated, but the industry should not ask for further cuts henceforth. “Both large companies and SMEs are expected to benefit from the decision. We also hope that banks will make credit available to SMEs at 8% interest rate.”
Source:Economictimes
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Thanks for sharing valuable information.
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