The PHD Chambers of Commerce and Industry has said that status quo for the key policy rates by RBI would help in strengthening the economic recovery with enhanced consumption and production possibilities.
The accommodative policy stance at this juncture would further boost the sentiments of businesses and pave the way for a double digit GDP growth in the current year 2021-22, said Pradeep Multani, PHDCCI President, in a statement here.
Reserve Bank of India’s Monetary Policy Committee has decided to keep the repo rate unchanged at 4% and maintain accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 and keep inflation within the target.
Reverse repo rate also remains unchanged at 3.35% in Monetary Policy Statement of October 8 , 2021.
“It is inspiring to note that RBI has retained the projection for GDP growth at 9.5% for FY 2021-22”, the statement added.
PHDCCI looks forward to a double digit growth of 10.25% in FY 2021-22 supported by the RBI’s conducive policy environment and various structural reforms undertaken by the Government during the last 18 months, it said.
It is highly laudable that RBI has undertaken more than 100 new and conventional measures since the onset of pandemic to mitigate its impact and enhance liquidity in the economy, Multani opined.
“We expect continuation of accommodative policy stance to rejuvenate the aggregate demand in the economy along with balancing the liquidity scenario in the country, he said.
PHDCCI also urged the banking sector to transmit all the cuts in the repo rate by RBI during last financial year to percolate the benefits to trade, industry and consumers for rejuvenating the demand and economic growth trajectory, going forward.
