Chambers Applaud RBI's Move To Keep Benchmark Interest Rates Stable

New Delhi, Feb 9 (KNN) The Reserve Bank of India (RBI) Monetary Policy Committee opted to leave the policy rate unchanged for the sixth consecutive time, citing global uncertainties and the imperative to bring retail inflation down to 4 per cent.

The Central Bank's choice to uphold the stability of the benchmark interest rate is hailed as a prudent move ensuring sustained economic growth, according to experts, as reported by ET.

Deepak Sood, Secretary General, Assocham, noted the significance of the continued focus on moderating inflation amidst global and domestic challenges, particularly concerning food prices.

He lauded the RBI's customer-centric approach in this context, describing the decision to maintain benchmark policy rates as pragmatic for fostering sustainable economic growth.

Puneet Kaura, Chairman, Confederation of Indian Industry (CII) Delhi State Council, expressed alignment with the RBI's action given prevailing economic and inflationary conditions.

He emphasised the supportive role this measure plays for interest-sensitive sectors like real estate, automobiles, manufacturing, and the Micro, Small and Medium Enterprises (MSMEs) sector.

Federation of Indian Micro and Small & Medium Enterprises (FISME) has also welcomed RBI’s decision to hold the Repo rates. Speaking to KNN, Secretary General FISME Anil Bhardwaj said that RBI’s decision underscores stability of Indian economy and that fiscal parameters are within control.

Sanjay Bhutani, Board Member, Medical Technology Association of India (MTaI), remarked that the decision to hold rates steady comes as no surprise considering inflation's proximity to the RBI's upper limit.

However, he highlighted sectors, including the capital-intensive and research-driven medical technology industry, eagerly anticipating a potential rate cut later this year.

The upcoming session of the Monetary Policy Committee (MPC) is slated to take place from April 3rd to April 5th, 2024.

(KNN Bureau)