The status quo in the Repo rate by RBI will give further momentum to growth: Dr A Sakthivel, President, FIEO
Commenting on RBI maintaining the repo rate at 6.5%, when US Fed has raised the rate by 25 basis points last fortnight and most people were expecting RBI to follow the suit, Dr A Sakthivel, President, FIEO said that it will further boost growth through increasing investment. While most Central banks have given more weightage to inflation as compared to growth, RBI stroke a nice balance between the two, giving primacy to growth.
President FIEO said that the increasing investment will lead to further production and easing of supply thus reducing the inflation in next couple of months.
The status quo in rates will also help our exporters whose cost of credit has gone up substantially due to upward revision in rate in last one and half year leading to the demand to increase the interest subvention from 2% and 3% to 3% and 5% respectively.
Dr Sakthivel said that our goods and services exports will cross US$ 770 Bn in 2022-23, exhibiting a 15% growth, which is a huge achievement in the background of contraction in global trade starting from the second half of 2022.
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