Money & Banking

Rate cut will boost sentiment: Rana Kapoor

Our Bureaus Mumbai/Coimbatore | Updated on January 16, 2018 Published on October 04, 2016

Rana Kapoor, MD & CEO, YES Bank, while complimenting the MPC and the Governor for their flying start, said, "The maiden policy decision taken by RBI’s MPC is completely justified by the ongoing disinflation in the economy. Today’s rate cut will boost sentiment and contribute towards reinvigorating growth impulses in the infrastructure, construction & manufacturing sectors. Backed by a healthy set of domestic macros and sustained global deflation, I expect 75 bps further easing in the coming months."

Mr. Anand Natarajan, Head of Strategy and Business Execution, Fullerton India Credit Company Limited, said: “The reduction in repo rate has been driven, expectedly, by continuing improvement in food inflation given strong sowing and measures to improve supply. We are hopeful that ample liquidity will enable continued transmission of this reduction, which will help further vitalize industry."

The 25 bps cut in the repo rate would help enhance the competitiveness of the knitwear garmenting exporting units, provided the benefit of such a reduction is passed on to customers, said Raja M Shanmugham, President, Tirupur Exporters' Association.

Exporters are struggling to sustain in the global market. This reduction of 25 bps in the repo rate would therefore bring some relief, he said, hailing the RBI's decision.

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Published on October 04, 2016
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