ICC welcomes rate cut by RBI

ICC welcomes rate cut by RBI

Agency News

Kolkata, May 22 : Reserve Bank of India advanced its scheduled monetary policy meet a second time and announced a 40 bps cut in repo and reverse rates, directing the RBI's focus from inflation control to injecting growth impulses, Director General, Indian Chamber of Commerce (ICC) Rajeev Singh on Friday said.

Indian Chamber of Commerce (ICC) is happy to note the emphasis on improving transmission of lower rates, increasing overall industry access to working capital. At the same time giving more time to pay accrued interest to ease debt servicing stress and relaxing asset classification norms. This move has come at the right time when Industry is struggling with liquidity issues.

The central bank also permitted banks to extend the moratorium on loans to 31 August which is expected to help MSMEs in a big way. In another departure from the established practice, RBI refrained from providing a guidance on GDP growth for fiscal 2021, or the expected rate of inflation, Dr Singh said ICC appreciates the underlying message to work hard collectively to come out of the economic stagnation, he added. (UNI)