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04-17-2012, 10:18 PM #1
RBI interest rate cut will boost investments: India IncStating that a stage for cheaper lending has been set with the RBI cutting short-term lending rate, India Inc today welcomed the move saying it would boost investments in the country.
"The repo rate cut will provide the boost to investment as well as send a strong signal that turning around growth is of pivotal importance," CII Director General Chandrajit Banerjee said.
The cut in repo rate by 50 basis points was much needed given that the GDP growth is moderating, he added.
Expressing similar sentiments, Assocham Secretary General D S Rawat said: "This has set the stage for cheaper lending costs and created an investment climate which could even possibly reverse inflationary pressures."
High interest rates have been discouraging fresh investments and dragged industrial production down for nearly two years now. The central bank has acted vigorously to reverse the slowdown, he added.
After a gap of three years, RBI slashed short-term lending rate by 0.50 per cent to 8 per cent which will reduce the cost of home, auto and corporate *****....being a human...