PHD Chamber welcomes the accommodative policy stance by RBI

No. PR- 213

February 5, 2021

New Delhi

PHD Chamber welcomes the accommodative policy stance by RBI

Mr. Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, has appreciated the continued accommodative stance by the Reserve Bank of India (RBI) in its Monetary Policy Statement of February 5, 2021.

We appreciate that the RBI’s Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 4% and maintain accommodative stance as long as necessary this year and next financial year to revive growth, mitigate impact of COVID-19 and keep inflation within the target, said Mr. Sanjay Aggarwal.

Reverse repo rate also remains unchanged at 3.35%, said Mr. Sanjay Aggarwal.

It is encouraging to note from the RBI statement that the signs of recovery in economic and business lead indicators have strengthened further and list of normalising sectors is expanding, said Mr. Sanjay Aggarwal.

We look forward to possible repo rate cut in future as cost of funds has to come down in coming times, said Mr. Sanjay Aggarwal.

We urge the banking sector to transmit all the cuts in the repo rate by RBI during last 10 months to percolate the benefits to trade, industry and consumers for rejuvenating the demand and economic growth trajectory, going forward, said Mr. Sanjay Aggarwal.

Ends

Media Division

PHD Chamber of Commerce and Industry