Repo rate cut to induce demand and economic growth: PHD Chamber

Repo rate cut to induce demand and economic growth: PHD Chamber

Repo rate cut to induce demand and economic growth: PHD Chamber

 

No.PR-208
March 4, 2015
New Delhi
 

Repo rate cut to induce demand and economic growth: PHD Chamber
 

Repo rate cut by 25bps from 7.75% to 7.5% by Reserve Bank of India will re-fuel the demand scenario which is affected by high interest rate regime vis-à-vis high inflation in the economy during the recent past said, Mr.  Alok B. Shriram, President, PHD Chamber of Commerce and Industry.
 

While common man will be benefited with softening of EMIs on loans; the ripple effect of rate cut will also  improve market sentiment and enable businesses to raise equity, going forward, said Mr. Shriram.
 

The growth prospects of the economy are expected to widen with revival of demand and investments, he added.
 

We appreciate and congratulate the Government and RBI on various calibrated steps to stabilize the price situation in the economy, which is expected to improve the livelihood of common man, said Mr. Shriram.

 

However, inducing demand scenario would be critical to re-fuel our economic growth trajectory and create jobs for millions of young work force. While containing the inflation, demand in the economy should remain intact, said Mr. Shriram.
 

Continuation of rate cut in the coming would be critical to help demand to remain intact and sentiment for investments to strengthen and grow, he said.
 

Looking ahead, revival of industrial activity should be at utmost priority and manufacturing sector must grow fast and contribute more significantly in the economic system , said Mr. Shriram.
 

ENDS

Koteshwar Prasad Dobhal
Consultant (PR)