RBI on course with soft lending rates; pro-growth stance: ASSOCHAM

New Delhi: The key takeaway from the credit policy review by the RBI Monetary Policy Committee is to continue with the ‘accommodative stance’ for the lending rates with an assurance that the central bank would extend support to the growth on a sustained basis, said ASSOCHAM.

“Given the inflationary challenges, it is no surprise that the RBI-MPC has kept the policy repo rate unchanged at four per cent. However, we must applaud the MPC for staying on course with regard to accommodative interest rate stance. What is more, Governor Mr Shaktikanta Das has laid a lot of emphasis on the fact that economic recovery would be dependent on sustained policy support,” ASSOCHAM Secretary General, Mr Deepak Sood said.

He said there is adequate liquidity in the banking system at present, leaving some more room for transmission of lower lending rates, leveraging the earlier reductions by the RBI. Mr Sood said, the banking system is clearly looking much more stable and robust today, weathering the Covid-19 storm with prudent and pragmatic policies.

The ASSOCHAM Secretary General listed specific measures in the policy review with regard to export finance, digital payment and strengthening the regulatory supervision as positives. “We share the optimism of the RBI about the growth returning with vigour in the financial year 2021-22.” The RBI’s projections on inflation too seem to be realistic.