Contact FICCI
FICCI disappointed with no rate cut by RBI
Dec 05, 2019
Deeply concerned over the growth revision for the current year to 5%: Sandip Somany, President, FICCI
NEW DELHI, 5 December 2019: Commenting on the monetary policy announcement by RBI earlier today, Mr Sandip Somany, President, FICCI said, "The RBI has left the repo rate unchanged in today's announcement. This is contrary to what FICCI was expecting given the weakening growth scenario in the economy. We note with concern that the transmission of the earlier policy rate cuts has not happened adequately, and are disappointed with the decision to not cut the repo rate as there is need for continued action on the policy rate front."
"A reversal in the declining economic growth trajectory is clearly the need of the hour and all steps should be taken to bring about this change. A cut in the policy rate was also important for boosting the sentiment in the market and amongst investors, and FICCI was hoping for a bolder action on this front. In fact, we feel that a further cut of 75 to 100 basis points in the repo rate is required in a short period of time to strengthen growth in the economy," he added.
"With the growth projection for the current year being revised down from 6.1% to 5%, both government and the central bank should initiate some stronger measures to break the logjam particularly in the stressed sectors of the economy. There has been some active consultation between industry and government, and we expect that between now and the next Union Budget some of the additional measures suggested by the industry will be implemented,"said Mr Somany.