New Delhi [India], April 5 : Industry leaders have hailed the Reserve Bank of India decision to maintain repo-rate at the current level.
While acknowledging the strides made, industry leaders underscored the need for continued vigilance amidst lingering challenges such as inflationary pressures and global uncertainties and emphasized the importance of ongoing policy adjustments to navigate such challenges effectively.
Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank said, "While low core inflation provides comfort, the uncertainty on food inflation remains a worry. Further, the higher US yields, higher oil prices and other commodities along with possible delay in Fed's rate easing cycle will keep the MPC wary. Accordingly, we do not see much scope for any rate easing until Q2FY25. Earliest possibility of rate easing can emerge in Q3 FY 25."
Anuj Puri, Chairman, ANAROCK Group said no change in rate will boost the real estate sector. "The Indian economy is going strong and inflation is reined in, though it has yet to come within the threshold of RBI's target. The decision to maintain status quo will keep the ongoing residential real estate sales momentum on course and unimpeded. Aspiring homebuyers eyeing a purchase will proceed with confidence."
Ayush Lohia, CEO, Lohia Auto said, "Within the EV sector, stable interest rates can have a favorable influence on the accessibility and financing of electric vehicles, stimulating greater consumer adoption of cleaner transportation alternatives. This corresponds with our objective of advancing sustainable mobility and mitigating carbon emissions".
With a revised growth rate of 7.6 per cent for FY24 and projection of 7 per cent growth in FY25 with inflation under control at 4.5 per cent, RBI's monetary policy has shown a bright outlook for the new fiscal. an equitable balance between growth and inflation.
Anu Aggarwal, President & Head Corporate Banking, Kotak Mahindra Bank said, "The monetary policy stance announced today reflects that the RBI is evenly balancing the two divergent objectives of growth and inflation. It seems a case of full commitment to growth with even higher commitment to inflation targets. I hope we will see sustained growth and softened inflation."
The policy has given a positive outlook for Current Account Deficit. It says CAD has narrowed significantly, merchandise and services exports have grown significantly and Forex reserve is at an all-time high of 645.6 billion dollars.
Shishir Baijal, Chairman and MD, Knight Frank India said, "The Governor's optimism is bolstered by the resilience in domestic macro fundamentals. With the government's revised GDP growth projection for FY 24 at 7.6 per cent, Manufacturing PMI hitting a 14-year high, strong Services PMI, and high FOREX reserves, sentiment is further uplifted, promising sustained long-term growth for the domestic economy".
Overall, RBI's Monetary Policy Report has been widely accepted and acclaimed by industry leaders, who view it as a guiding framework for steering India's economy towards stability and growth.
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