Industry associations welcome RBI rate cut decision

Industry associations Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) have welcomed the cut in the repo rate as a positive step towards improving private investment and consumption activity.

"The resumption of the rate easing cycle which is expected to bring down banks' lending rates will provide a fillip to both consumption and investment demand" said President CII, Rakesh Bharti Mittal, adding that provisions in the budget to stimulate demand in the housing and infrastructure sectors would be reinforced by the RBI's latest step.

FICCI President, Sandeep Somany echoed these sentiments calling the change in monetary policy a "welcome beginning".


"There is also a firm recognition of the need to strengthen private investment activity and buttress private consumption. While FICCI had hoped for a larger cut in the repo rate, we believe that the cut of 25 basis points will be followed up with more such measures in the subsequent months” said Somany in a press release.

Somany also added that measures to aid growth were "the need of the hour" to strengthen the domestic economy as growth in the global economy shows signs of slowing.