Kolkata, Aug 6 (UNI) Welcoming the RBI’s decision to keep the repo rate unchanged at 5.5 per cent,
EEPC India today hoped that the policy rate would be reduced in the coming months.
“Despite inflation remaining low, the RBI has maintained the status quo on the policy repo rate, keeping the key interest rate unchanged at 5.5 per cent as this indicated that the central bank has adopted a cautious approach while maintaining policy stability,” EEPC India chairman Pankaj Chadha said in a statement.
“We welcome the RBI decision but hope that the policy repo rate will be reduced in the coming months,” he added.
The Reserve Bank of India’s Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, unanimously decided to keep the repo rate unchanged at 5.5 pc in its latest policy review today.
A lower borrowing cost would significantly help the industry, especially MSMEs, which have been finding it difficult to cope with back-to-back challenges, the EEPC India opined.
“At a time when there is growing uncertainty on the global front, the engineering goods exports sector needs continuous support, both fiscal and monetary. Though the engineering exports sector has managed to record positive growth so far in the current fiscal, uncertainty surrounding the trade deal with the US poses downside risks,” Chadha pointed out.
” We, however, hope that an interim bilateral trade deal with the US would be signed in the coming months,” he said.
