Press Esc to close
Saturday 01 November 2014
News updated at 10:17 AM IST
Weather
Max: 25°C
Min : 19°C
In Bangalore
Partially cloudy

RBI may have given more robust signal to industry, says Montek

New Delhi, Mar 20, 2013 (PTI)

Planning Commission Deputy Chairman Montek Singh Ahluwalia said the RBI could have given a more robust signal to the industry after a 25 basis points rate cut which was widely expected to reduce cash reserve ratio too to inject liquidity in the banking system facing cash crunch.

 "The rate cut is a signal and I have to say that it is in the right direction", he said, while addressing an Assocham conference here.

 "We are looking at it with unhappiness. We feel, the signal should have been stronger...Many people would say that the signal should have been more robust than 25 basis points,” Ahluwalia said while commenting on RBI's decision to cut short-term (repo) rate by 25 bps to 7.5 per cent to boost growth.


 "I am glad that RBI has signalled continuing reduction of the rate," he said, adding the macro economic situation has started turning around for the better.

 "The reduction in repo rates by 25 basis points is a welcome move and indicates continued focus on growth. At the same time, RBI's commitment towards maintaining adequate liquidity in the system is important in the context of continued smooth functioning of markets,” Chanda Kochher, MD and CEO of ICICI Bank said.

 Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said the 25 basis points  is welcome and may assuage various sectors of trade and industry and the market sentiment.

Work in tandem

“The decision of RBI to reduce repo rate by 25 basis points in response to the fiscal consolidation efforts made by the government has sent a strong signal that the RBI and the government would work in tandem to bring growth back to the economy,”  CII President Adi Godrej said.

Finance Minister P Chidambaram had on Monday said that he expected the RBI to address the liquidity shortage in the banking system and his remarks had renewed hopes among investors that the RBI will also cut the CRR to help banks with adequate cash in hand.

Go to Top

Photo Gallery
A view of the statue of Sardar Vallabhbhai Patel on the occasion of his birth anniversary...

A view of the statue of Sardar Vallabhbhai Patel on the occasion of his birth anniversary...

Congress President Sonia Gandhi and Rahul Gandhi paying tribute to former Prime Minister...

Congress President Sonia Gandhi and Rahul Gandhi paying tribute to former Prime Minister...

Artists perform during a function on the occasion of birth anniversary of Sardar...

Artists perform during a function on the occasion of birth anniversary of Sardar...

Members of Thamizhar Vazhvurimai Koottamaippu during a protest against Sri Lankan court's...

Members of Thamizhar Vazhvurimai Koottamaippu during a protest against Sri Lankan court's...

Indian cricket players during their practice session at barabati stadium in Cuttack...

Indian cricket players during their practice session at barabati stadium in Cuttack...

Delhi Police band performs at India Gate near Amar Jawan Jyoti to salute Sardar...

Delhi Police band performs at India Gate near Amar Jawan Jyoti to salute Sardar...

Army soldiers patrolling after an IED was recovered in a gas cylinder near the Circuit House...

Army soldiers patrolling after an IED was recovered in a gas cylinder near the Circuit House...

Tourist take pictures from a boat as people bath in the Ganges river in Varanasi...

Tourist take pictures from a boat as people bath in the Ganges river in Varanasi...

Devendra Fadnavis being sworn-in as the new Maharashtra Chief Minister by Governor...

Devendra Fadnavis being sworn-in as the new Maharashtra Chief Minister by Governor...

A camel herder sits as he feeds his camels at the annual cattle fair in Pushkar, in the Rajasthan...

A camel herder sits as he feeds his camels at the annual cattle fair in Pushkar, in the Rajasthan...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523