RBI Policy Would Accelerate Economic Recovery, Says EEPC India Chairman
New Delhi, Feb 10: The Reserve Bank of India (RBI) has expectedly maintained status quo on key policy rates and continued with accommodative stance to support growth, said EEPC India Chairman Mahesh Desai. He said that low-interest rate regime would support economic recovery which has been sporadically facing headwinds in the form of new pandemic wave and resultant supply disruptions. Monetary Policy Committee (MPC) led by Governor Shaktikanta Das on Thursday unanimously decided to keep the key policy repo rate unchanged at 4 per cent.
The MPC also decided by a majority of 5 to 1 to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of Covid 19 on the economy while ensuring that inflation remains within the target going forward.
The rate-setting panel was of the view that continued policy support is warranted for a durable and broad-based recovery. In a bid to ease liquidity for MSME sector, the RBI has proposed to increase the National Automated Clearing House (NACH) mandate limit to Rs 3 crore for TReDS related settlements. While welcoming the move to support MSME sector, EEPC India Chairman Desai said that RBI should come up with notification to extend Interest Equalization Scheme for Rupee Exporters. “The RBI’s monetary policy complements the government’s growth focus and would certainly accelerate recovery, he said.
