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There is need for continued action on the policy rate front to boost growth: FICCI
Dec-06-2019

Federation of Indian Chambers of Commerce and Industry (FICCI) has expressed disappointment at the Reserve Bank of India’s (RBI’s) decision to keep interest rates unchanged and said there is a need for continued action on the policy rate front to boost growth. FICCI President Sandip Somany said ‘the RBI has left the repo rate unchanged. This is contrary to what FICCI was expecting given the weakening growth scenario in the economy. We note with concern that the transmission of the earlier policy rate cuts has not happened adequately, and are disappointed with the decision to not cut the repo rate as there is need for continued action on the policy rate front.’

He said a reversal in the declining economic growth trajectory is clearly the need of the hour and all steps should be taken to bring about this change. He added that a cut in the policy rate was also important for boosting the sentiment in the market and amongst investors, and FICCI was hoping for a bolder action on this front.

He also said ‘in fact, we feel that a further cut of 75 to 100 basis points in the repo rate is required in a short period of time to strengthen growth in the economy.’

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