New Delhi: Federation of Indian Chambers of Commerce & Industry (FICCI) has hailed the monetary policy of the Reserve Bank of India (RBI) while calling it 'positive for growth revival.' Earlier, the RBI has announced a hike in the repo rate and reverse repo rate to 6.25 percent and 6 percent respectively.
"Today's 25 bps rise in repo rate by RBI is based on the ground realities and it indicates towards the positive sentiments in the economy."
"Recovery in Indian economy that has come on the back of structural reforms like GST, Bankruptcy Code and Real Estate Regulatory Authority (RERA) is firming up, and investments have started to see an uptick; RBI stance would boost the animal spirits and confidence of businesses," said FICCI president Rashesh Shah.
He added that the GDP growth rate in the current financial year would be around 7.5 percent. "The manageable inflation situation and optimism in the economy is set to continue going ahead," he said.
Meanwhile, SBI Chairman Rajnish Kumar also welcomed RBI's move, saying it's flexible. "The RBI decision to raise the repo rate by 25 bps is a preemptive and welcome move. Simultaneously, the decision to keep the stance in neutral mode indicates RBI willingness to be flexible and accommodative," Kumar said.
"On the development front, the bouquet of measures are positive. In particular, the increase in FALLCR will provide more liquidity to banks and moderate short end interest rates. Other measures like increase in threshold limits for affordable housing, encouraging continued formalization of MSME sector are in the right direction. The change in SDL valuation norms are long-term positives and the spread of MTM losses over 4 quarters will provide the banks with much-needed relief." he added.