Home / Knowledge / News / Textiles / Assocham, Ficci welcome RBI rate cut
Assocham, Ficci welcome RBI rate cut
05
Apr '16
Industry bodies Assocham and Ficci have welcomed the 25 basis point repo rate cut announced by the Reserve Bank of India today.

Assocham President, Sunil Kanoria said that though India Inc would have liked at least a 50 basis points cut in the policy interest rates by the RBI, the measures announced to inject enough liquidity into the system should enable banks to cut lending rates.

"The transmission in the interest rates at the ground level should factor in not only today's reduction in the Repo rate but also the new lending norms being affected by the regulator. Besides, adequate liquidity injection by the RBI should ease concerns of the banks over falling growth in deposits," said Kanoria.

However, the Assocham chief said that given the kind of stress in large sectors of the economy, particularly in the manufacturing, construction, infrastructure, the policy interest rates cut should have been bolder.

"Eventually, lower interest rates would have an all-round positive impact in terms of reducing the non-performing assets, increased investment, aggregate domestic demand and overall vibrancy in the system," said Kanoria. "Lower food inflation should have encouraged the RBI to be more accommodative."

Sharing the concerns of RBI over the impact of 7th Pay Commission on inflation, the Assocham president said, "The pay commission would not only lead to higher inflation but would have an adverse impact on the fiscal situation of the country."

Welcoming the reduction in repo rate by 25 bps, Harshavardhan Neotia, President of Ficci said, “RBI's decision to cut the repo rate and follow accommodative monetary policy stance is a positive step, given the favourable conditions with respect to inflation and fiscal stability. Ficci has for long advocated the need for greater cuts in the policy rate to stimulate demand and investments in the economy.”

“Additionally, several steps announced to ease liquidity should help in effective transmission into lending rates by the banks. The banks already have enough room to pare the lending rates owing to recent reduction in small savings interest rate up to 1.3 per cent as well as the introduction of the marginal cost of funds based lending rate (MCLR). We now look forward to banks taking the lead in supporting the investment cycle and improving economic growth”, Neotia added. (SH)

.

Fibre2Fashion News Desk – India


Must ReadView All

Top 15 US fashion brands are collectively worth $70 bn

Fashion | On 22nd Jul 2018

Top 15 US fashion brands are collectively worth $70 bn

The top 15 American fashion brands are collectively worth close to...

Courtesy: Covestro

Textiles | On 22nd Jul 2018

Covestro's new products for waterproof textile coating

Covestro, which is among the largest polymer companies, has unveiled...

Evogene, IMAmt to work together in insect resistance

Textiles | On 22nd Jul 2018

Evogene, IMAmt to work together in insect resistance

Evogene, a leading biotechnology company developing novel products...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search