Rate reduction by RBI is a positive step: FICCI

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New Delhi, Apr 5 (ANI): Welcoming the reduction in repo rate by 25 bps, the apex body FICCI commented the policy and the rate cut as a positive step, given the favorable conditions with respect to inflation and fiscal stability.

“FICCI has for long advocated the need for greater cuts in the policy rate to stimulate demand and investments in the economy,” said President FICCI, Harshavardhan Neotia.

“Additionally, several steps announced to ease liquidity should help in effective transmission into lending rates by the banks. The banks already have enough room to pare the lending rates owing to recent reduction in small savings interest rate up to 1.3 percent as well as the introduction of the marginal cost of funds based lending rate (MCLR). We now look forward to banks taking the lead in supporting the investment cycle and improving economic growth”, added Neotia. (ANI)

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