RBI’s decision of cutting the interest rate is always welcomed by Industry stakeholders. Industry experts came forward in support of RBI’s decision. RBI governor Raghuram Rajan, after given thumbs up to the Budget 2015, today announced a cut in the repo rate by 25 basis points to 7.5%.
While welcoming this RBI’s move, MoS Finance Jayant Sinha said, “This step will provide a near-term boost to the economy. We have limited room to provide relief to tax payers. But with RBI rate cut, I see EMIs coming down significant.”
Debopam Chaudhuri, VP- Research & Chief Economist, ZyFin Research was the first one to share his views on this development by saying, “Indian markets and the economy in general have lots to rejoice as the fiscal year comes to a close. Revised official GDP estimates indicating an imminent recovery, a committed government targeting improvements in governance, slowing inflation and improving consumer and investor sentiment point towards a paradigm shift within the Indian economy. The recent move by RBI symbolizes the convergence in monetary and fiscal policy targets which would add to a further strengthening in investor confidence. Monetary policy is expected to soften from now on, easing access to money and finally trickle down to a rise in consumer spending. Indian consumers have been tightening their purse strings for quite some time now owing to prolonged economic slowdown but now hopefully, spending should rise in 2015-16.”