• ICC welcomes Rate Cut

MUMBAI, 22 MAY, 2020 (GPN): Dr. Rajeev Singh, Director General, Indian Chamber of Commerce (ICC) shares his perspective on RBI’s announcements: Reserve Bank of India advanced its scheduled monetary policy meet a second time and today announced a 40 bps cut in repo and reverse rates, directing the RBI’s focus from inflation control to injecting growth impulses.

Indian Chamber of Commerce (ICC) is happy to note the emphasis on  improving transmission of lower rates, increasing overall  industry access to working capital. At the same time giving more time to pay accrued interest to ease debt servicing stress and relaxing asset classification norms. This move has come at the right time when Industry is struggling with liquidity issues.

The central bank also permitted banks to extend the moratorium on loans  to 31 August which is expected to help MSMEs in a big way.In another departure from the established practice, RBI  refrained from providing a guidance on GDP growth for fiscal 2021, or the expected rate of  inflation.

ICC appreciates the underlying message to work hard collectively to come out of the economic stagnation. ENDS