Rate cut will cushion economy from global turmoil: India Inc

New Delhi: The Reserve Bank’s move to lower its benchmark repo rate for the second time in a row will cushion India’s economy against external shocks in the face of reciprocal tariffs imposed by the US that has triggered a global turmoil, industry bodies said on Wednesday. The RBI on Wednesday slashed the key interest rate by 25 basis points to 6 per cent providing relief to home, auto and corporate loan borrowers. CII Director General Chandrajit Banerjee termed the decision to continue with the rate easing cycle as timely and prudent.

“The rate cut coupled with the shift in monetary policy stance from ‘neutral’ to ‘accommodative’, too, is a big positive,” Banerjee said. The RBI’s rate cut, and stance change reflect concerns about the impact of slower global growth on domestic economy and a relatively benign outlook for domestic inflation, he added. CII is of the view that RBI’s accommodative monetary policy combined with the government’s growth-centric fiscal policy will help boost domestic growth amidst global economic turmoil, Banerjee added.



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