SME Times News Bureau | 08 Oct, 2019
Industry body FICCI
has welcomed the 25-bps cut in the repo rate by the central bank, adding that
this will push economic growth.
With monetary and
fiscal policy working in tandem, revival in the growth should not be too far
away, said FICCI President Sandip Somany.
"The 25-bps cut
in the repo rate is a welcome move and we compliment the central bank for its
continuous emphasis on reviving growth. This along with the mandatory linking
of floating rate loans to an external benchmark from October 1 should trigger
an improved transmission of policy rate cuts and lower the lending rates going
ahead," he added.
"The
accommodative stance with regard to monetary policy is in conjunction with the
announcements made by government over the past few weeks to revitalise growth.
With monetary and fiscal policy working in tandem, we are hopeful that a
revival in the growth should not be too far away," Somany sa
Even though the GDP
growth estimate has been revised down to 6.1% for 2019-20, the measures
announced by the government and the stance undertaken by RBI impart confidence,
he viewed.
The cut in the
corporate tax rate, further easing of FDI norms, and enabling provisions with
regard to housing and export sectors bode well for propping up of the supply
side of the economy, he added.
"We are hopeful that
the slew of these timely rate cuts will provide much-needed support to the
demand pulse. Moreover, the festive season has already begun and we are hopeful
of a pick-up in consumption activity" said Somany.
