Home / Knowledge / News / Textiles / RBI slashes repo rate by 25 bps
RBI slashes repo rate by 25 bps
02
Jun '15
In its second bi-monthly policy statement for the new fiscal, the Reserve Bank of India slashed repo rates by 25 bps to 7.25 per cent while keeping CRR and SLR rates unchanged at 4 per cent and 21.5 per cent, respectively.

This is the third time the RBI has axed repo rates this year. Justifying the premise for this cut, RBI Governor Raghuram Rajan said "Banks have started passing through some of the past rate cuts into their lending rates, headline inflation has evolved along the projected path, the impact of unseasonal rains has been moderate so far, administered price increases remain muted, and the timing of normalisation of US monetary policy seems to have been pushed back. With low domestic capacity utilization, still mixed indicators of recovery, and subdued investment and credit growth, there is a case for a cut in the policy rate today.”

The reduction in the repo rate will lower cost of funds for banks and is a signal to them to reduce lending rates. Rajan said the economic recovery was still slow but there were scope for further cuts if the monsoon was better than expected or if government took measures to offset impact of monsoon.

The third bi-monthly monetary policy statement will be announced on August 4, 2015.

The Tirupur exporters association (TEA) has welcomed the RBI’s decision to cut the repo rate. In a press statement, TEA president Dr A Sakthivel said he welcomed the RBI announcement to reduce the repo rate by 0.25 per cent. He said the interest rate cut would be helpful to quote competitive rate and sustain in the global market only when the banks pass on the measures to the SME units and exporting units. (SH)

Fibre2fashion News Desk – India


Must ReadView All

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Ebay

Apparel/Garments | On 19th Jun 2018

eBay partners with Noon for e-commerce sales in Middle East

Noon, the $1 billion e-commerce venture backed by Dubai businessman...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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


June 2018

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

news category


Related Categories:

Advanced Search