Home / Knowledge / News / Textiles / RBI cuts repo rate by 50 points to 6.75%
RBI cuts repo rate by 50 points to 6.75%
29
Sep '15
Governor Rajan speaking at press conference/Courtesy: youtube
Governor Rajan speaking at press conference/Courtesy: youtube
In a significant boost for the economy, Reserve Bank of India governor Raghuram Rajan has announced a 50 basis points cut in repo rate. The repo rate now stands at 6.75 per cent. Rajan left the Cash Reserve Ratio (CRR) unchanged at 4 per cent. This is the fourth repo rate cut by the RBI since January 2015.

However, the Bank has lowered its FY16 GDP growth target to 7.4 per cent from 7.6 per cent. The RBI said inflation is expected to reach 5.8 per cent in January 2016 which is below its target of 6 per cent. It also said the focus should now shift to bringing inflation down to 5.5 per cent by FY17-end.

Governor Rajan said the RBI intends to be as accomodative as possible given its inflation targets and with this 50 basis points rate cut, he has set the ball rolling.

“We need to say that we have greater comfort on the inflation path,” Rajan said. And he also warned, “Weak monsoon continues to be risk to inflation.”

Rajan has been under pressure from the Finance Ministry as well as the industry to cut interest rate to spur economic recovery and mitigate the impact of slowing China on India.

The focus of monetary action in the near term will shift towards removing impediments in rate cut transmission by banks, the RBI said.

In a statement, the RBI cautioned that since the third bi-monthly statement of August 2015, global growth has moderated, especially in emerging market economies, global trade has deteriorated further and downside risks to growth have increased.

However, as far as India is concerned, a tentative economic recovery is underway, but is still far from robust, the RBI statement stated. (SH)

 

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Courtesy: IVL

Textiles | On 26th Jul 2017

IVL completes PTA capacity expansion in Europe

Indorama Ventures Public Company Ltd (IVL), a global chemical...

Textiles | On 26th Jul 2017

Vietnam’s textile & garment exports cross $13bn in H1

Vietnam earned $13.... billion from textile and garment exports in...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Larry L Kinn
Suominen Corporation

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

Ashok Desai
Bombay Textile Research Association

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X