Industry welcomes RBI’s focus on reviving growth

RBI's six-member Monetary Policy Committee on Friday voted unanimously to retain the repo rate at 4 per cent while keeping its policy stance accommodative

New Delhi: India Inc has welcomed RBI’s resolve to continue with an accommodative monetary policy stance and focus on reviving growth.

RBI’s six-member Monetary Policy Committee on Friday voted unanimously to retain the repo rate at 4 per cent while keeping its policy stance accommodative.

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The central bank sees the economy contracting 9.5 per cent in the current fiscal. CII director general Chandrajit Banerjee said additional measures announced by RBI to support growth in the form of liquidity support, reviving exports, credit support, and improving ease of doing business are expected to give the much-needed impetus to drive the ‘three-speed’ recovery which the central bank expects.

Ficci President Sangita Reddy said while the policy repo rate was not cut by RBI, several other measures were announced that should help bring down interest rates in the market.
Assocham Secretary General Deepak Sood said RBI Governor Shaktikanta Das’ “dared to be optimist” approach shows his steely resolve to face the unprecedented situation arising out of the COVID-19 pandemic.

“What is notable in this edition of RBI’s monetary policy announcement is its emphatic commitment to ‘public good’ and its intent to remain accommodative for such public good. These are welcome words in support of an economy that is looking to rebound from a pandemic,” said Ashutosh Bishnoi, MD & CEO at Mahindra Manulife Mutual Fund.

Reliance Home Finance CEO Ravindra Sudhalkar said RBI’s stance to rationalise risk weightage on home loans is a welcome move. “With all new housing loan risk now linked only to loan to the value, the rates will continue to be in check and hence encourage new buyers,” he added.