Mumbai, Oct 4: Federation of Indian Chambers of Commerce & Industry (FICCI) on Friday termed the 25-bps cut in the repo rate a 'welcome move' and complimented the central bank for its continuous emphasis on reviving growth.
This, along with the mandatory linking of floating rate loans to an external benchmark from October 1, should trigger an improved transmission of policy rate cuts and lower the lending rates going ahead, said Mr Sandip Somany, president, FICCI. 'The accommodative stance with regard to monetary policy is in conjunction with the announcements made by government over the past few weeks to revitalise growth. With monetary and fiscal policy working in tandem, we are hopeful that a revival in the growth should not be too far away,' added Mr Somany.
'Even though the GDP growth estimate has been revised down to 6.1% for 2019-20, the measures announced by the government and the stances undertaken by RBI impart confidence. The cut in the corporate tax rate, further easing of FDI norms, and enabling provisions with regard to housing and export sectors bode well for propping up of the supply side of the economy. We are hopeful that the slew of these timely rate cuts will provide much-needed support to the demand pulse. Moreover, the festive season has already begun and we are hopeful of a pick-up in consumption activity he said. (UNI)