Friday, Apr 19 2024 | Time 07:42 Hrs(IST)
image
Business EconomyPosted at: Dec 5 2019 6:55PM


Pause in softening interest rate cycle to allow more transmission is sensible: India Inc

New Delhi, Dec 5 (UNI) Assocham president Mr B K Goenka on Thursday said a temporary pause by the Reserve Bank of India to the policy interest rate reduction cycle while keeping its stance accommodative is understandable as long as it keeps nudging the banks to significantly pass the benefits of earlier rate combined Repo rate cuts of 135 basis points since February this year.
Commenting on the RBI's Monetary Policy Committee's decision to keep the Repo rate unchanged at 5.15 per cent, Mr Goenka said by the central bank's own assessment against rate cuts of 135 basis points in the last 10 months, the transmission by the banks has been only 44 basis points. ''We agree with RBI Governor Mr Shaktikanta Das that there is no point announcing rate cuts mechanically, unless the actual transmission takes place at the ground level.''
The Associated Chambers of Commerce and Industry of India president said that with the growth projections by the RBI being substantially lowered to 5 per cent for FY 20 and the second quarter GDP expanding by 4.5 per cent, the economy needs a major demand push which can be greatly generated by much higher credit growth which remains dismal. " While inflation control remains the mandate of the RBI, balancing the target with growth is equally important and the tone and tenor of RBI Governor's statement and subsequent media interaction points towards this end. Besides, a coordinated approach with the government to prime up the GDP growth, as underscored by Mr Das , is equally appreciable.''
In a statement here, Mr Goenka said the focus should primarily be directed towards demand revival . While the government does seem to be doing the heavy lifting, revival of consumer confidence would do the trick. "Sectors like real estate and construction can really lift the sentiment , making it imperative for the Stress Fund of Rs 25,000 crore to be made functional for the sector. Besides, improved outlook in agriculture should also help the economy bottom out faster''.
UNI RP1855
Please log in to get detailed story.
Tags: #Pause in softening interest rate cycle to allow more transmission is sensible: India Inc
More News

Bajaj Auto net profit at Rs 1936 cr in Q4; clocks all-time high revenue in FY24

18 Apr 2024 | 6:46 PM

New Delhi, Apr 18 (UNI) Two wheeler auto major Bajaj Auto on Thursday announced 29 percent jump in its revenue in Q4 (January-March) at 11,485 crore, led by the broad based buoyancy that was sustained on the domestic business and aided by steady exports.

see more..

Entering share market can boost growth of SMEs: Infopark event

18 Apr 2024 | 6:31 PM

Kochi, Apr 18 (UNI) Small and marginal companies in Kerala enjoy immense scope for growth by entering the stock market, experts said at an Infopark-organised event here on Thursday.

see more..

18 Apr 2024 | 6:09 PM

New Delhi, Apr 18 (UNI) Angle One, a retail stock broking house in India, today announced 31 per cent jump in net profit at Rs 340 crore during Q4 of the last financial year over Rs 260.3 crore in the previous quarter.

see more..

Microsoft and ByteXL join hands to Present HackXcelerate 2024 at CBIT in Hyderabad

18 Apr 2024 | 5:57 PM

Hyderabad, Apr 18 (UNI) Microsoft, a global technology leader, has joined hands with ByteXL, a pioneering EdTech platform, to present HackXcelerate 2024, a nationwide hackathon aimed at igniting creativity and enhancing problem-solving skills among students.

see more..

Honda Motorcycle & Scooter India inaugurates new Engine Assembly Line for CKD exports

18 Apr 2024 | 5:46 PM

Gurugram, Apr 18 (UNI) Honda Motorcycle & Scooter India (HMSI), one of the country’s leading two-wheeler manufacturers, has announced a significant milestone in its journey.

see more..
image