FICCI comments on RBI Monetary Policy
New Delhi(N4C Desk)- Commenting on the RBI’s Monetary Policy statement issued earlier, Dr. Jyotsna Suri, President, FICCI said “Following a cut in the repo rate introduced last month, RBI has today introduced a cut in the SLR rate by 50 basis points. This is a clear indication to the banking sector to make liquidity and funds available for productive purposes such as investments to spur growth.
With the government on one hand easing hurdles that have stalled large projects and RBI taking measures to direct more liquidity towards productive purposes, we hope that growth will get a boost going ahead.”
“Although a repo rate cut today would have perked up sentiments, we do understand that the RBI is clearly now looking at the fiscal consolidation measures that would be announced in the upcoming budget.
Given that the government is committed to maintaining fiscal prudence, we are hopeful that the repo rate cut cycle would be resumed after the presentation of the Union Budget for 2015-16. We see the need for a cut of at least another 75 basis points during 2015 and its effective transmission by the banks to industry in the form of lower lending rates to boost growth on a sustainable basis”, she added.