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RBI must find space for rate cut in coming quarters: Rashesh Shah, President, FICCI
Apr 06, 2018
NEW DELHI, 5 April 2018: It is encouraging to note that RBI has lowered inflation forecasts and raised growth projections for 2018-19 as projected by FICCI.
"While the Reserve Bank of India has maintained status quo in current monetary policy statement, we hope that RBI will soon consider cut in policy rate and give a further boost to demand and investments," said Mr. Rashesh Shah, President, FICCI.
FICCI had in-fact suggested a benign stance and balanced approach by the RBI, keeping in mind the need for pushing growth in investments.
"While the economy is seeing signs of recovery, support is needed from all quarters to translate this into a firm recovery. This is critical for pushing investments, growth and job creation," said Mr. Shah.
Even though RBI has maintained a status quo on the policy rates, inflation and growth projections for 2018-19 do provide optimism for a rate cut in forthcoming monetary policy decisions, Mr. Shah added.
FICCI hopes that going forward RBI will adopt an accommodative stance and thereby give a boost to demand and investments. This is critical for transcending to higher growth trajectory as well as to create more job and work opportunities.
"Additionally, as the recapitalization process of public sector banks gains traction and measures aimed at addressing NPAs materialize, we believe that there will be effective transmission of lending rates and greater room for lowering of lending rates by the banks," said Mr. Shah.