The increase in the repo rate by 25 basis points has come as a surprise to us. The RBI has admitted that industrial activity continues to remain sluggish and even consumption demand is now starting to weaken in the economy. In such a scenario, a positive signal by way of a cut in the repo rate would have helped perk up sentiments
FICCI President, Naina lal Kidwai
RBI’s rate hike is not on the expected lines at all and it is a major jolt for the automotive industry ahead of the festival season. We were expecting marginal growth in sales during the festival season due to a good monsoon but now even that looks challenging
General Motors India Vice President, P Balendran
Measures taken such as reduction in MSF rate and an increase in the policy repo rate to 7.5 per cent will reverse to some extent the liquidity tightening measures taken by RBI in mid July
FIEO President M Rafeeque Ahmed
Industry would have liked reduction in headline rates. The reduction in MSF by 75 bps is encouraging as this is working as the short term interest rate
CII Director General Chandrajit Banerjee
The focus on altering the path of current account deficit and reviving prospects for domestic financial savings signals RBI’s resolve towards providing structural stability to the exchange rate
ASSOCHAM President Rana Kapoor
It is equally important for the RBI to promote economic growth by encouraging real estate and infrastructure development even as the new Governor has inflation on his mind
CREDAI’s Chairman lalit Kumar Jain