Mr Niranjan Hiranandani- National President – NAREDCO and Sr VP-Assocham on RBI Policy

New Delhi, April 05, 2019: India Inc. got positive news as regards a rate cut in the first monetary policy of the current fiscal, on 04 April 2019. The need for flexibility with the evolving situation in India, given that both, inflation and growth have slowed, was reflected in the RBI’s move. Economic growth weakened to 6.6 per cent at end-2018, the slowest in five quarters; while annual retail inflation was low, at 2.57 per cent in February following five months of deflation in food prices.

The sentiment in India Inc. is that from the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) having granted the 25 basis points (bps) rate cut in today’s policy review would be followed by another 25 bps in the near future. The Indian economy needs liquidity as fuel to power the growth engine. The RBI move is expected to lift industry sentiments, as also provide relief to various stakeholders like corporates as also in real estate, homebuyers. We expect that banks further pass down the benefit for the rate cut to the home buyers which shall further trigger the home buying in to the actual sales.

Corporate Comm India(CCI Newswire)