FICCI welcomes repo rate cut; looks forward to swift, effective transmission of rate cuts by banks

Commenting on the monetary policy announcement made earlier today, Mr Harsha Vardhan Agarwal, President, FICCI said, “FICCI welcomes Reserve Bank of India's decision to cut the repo rate by 25 basis points for the second time this year. Also, the shift in the monetary policy stance to ‘accommodative’ from ‘neutral’ is timely. The accommodative stance signals the central bank's commitment to supporting growth while ensuring financial stability. We now look forward to a swift and effective transmission of the rate cut by the banks in the form of lower lending rates. At this time, it is imperative that we continuously strengthen the domestic levers of growth as the global environment is very dynamic and is fraught with several uncertainties and we see today’s decision by RBI with regard to the policy rate as a step in that direction.”
 
FICCI has also taken a note of the proposal to expand of the scope of co-lending arrangements to all regulated entities and across all loans. This is an encouraging step that will enhance credit flow and expand financial access across different segments of the economy.