The Tirupur Exporters Association (TEA) has welcomed the Reserve Bank of India's decision to reduce policy repo rate by 25 basis points from 6.75 per cent to 6.5 per cent with immediate effect. The RBI kept the Cash Reserve Ratio (CRR) unchanged at 4 per cent.
In a press release, TEA president Dr.A.Sakthivel pointed out that as mentioned in the Monetary Policy the introduction of the Marginal Cost of Funds based Lending Rate (MCLR) should improve transmission and magnify the effects of the current policy rate cut which is paramount importance for the exporting units to enhance their competitiveness in the subdued world trade.
Dr. Sakthivel also welcomed the RBI stance in monitoring the developments closely to contain any unanticipated forex market volatility. Sudden currency fluctuations will put the exporting units, particularly SME exporting units, into quagmire position if the RBI does not intervene immediately, he added.
The TEA chief also welcomed the measures initiated by RBI Governor Raghuram Rajan to maintain transparency in the functioning of banks. (SH)
Fibre2Fashion News Desk – India