April 4, 2019
Repo rate cut to induce demand and spur economic growth: PHD Chamber
While welcoming the 25 basis points cut in repo rate from 6.25% to 6% by RBI in today’s review of monetary policy, Mr. Rajeev Talwar, President, PHD Chamber of Commerce and Industry said in a press statement issued here today that it will induce demand, strengthen investments and spur economic growth.
RBI in its First Bi-monthly Monetary Policy Statement, 2019-20, has reduced the repo rate to 6% from 6.25%, reverse repo rate under the LAF at 5.75%, marginal standing facility (MSF) rate and the Bank Rate at 6.25%.
PHD Chamber compliments and appreciates the great dedication of the Government and RBI on taking calibrated steps to stabilize the price situation and maintaining the high growth trajectory.
On account of reduction in repo rate at this juncture would rejuvenate demand in rural areas and augment buying of consumer durables’ vis-a-vis refuel industrial growth, added Mr. Rajeev Talwar.
The transmission of the policy rate cut by the banking sector in terms of reduced lending rates would be crucial to induce demand and industrial growth in the country, added Mr. Talwar.
Cut in repo rate will enhance our exporters’ competitiveness in the international markets, said Mr. Talwar.
It is inspiring that Reserve Bank of India has decided to constitute a Committee on the Development of Housing Finance Securitisation Market, said Mr. Talwar.
The decision to set up a Task Force on the Development of Secondary Market for Corporate Loans would play an important role in assessing best international practices and propose measures for developing a thriving secondary market for corporate loans in India, added Mr. Talwar.
We believe higher industrial growth vis-a-vis strong demand scenario coupled with speedy implementation of reforms and ease of doing business will push our economy further in higher growth trajectory, said Mr. Talwar.
Koteshwar Prasad Dobhal