Statement by Mr Chandrajit Banerjee, Director General, CII on Monetary Policy, February 2025
Coming just days after the Phenomenal Budget, the Monetary Policy Gives a Huge Boost to Economy
Commenting on the Monetary Policy, Mr Chandrajit Banerjee, Director General, CII, said, "Coming just days after the Phenomenal Budget, the Monetary Policy Gives a Huge Boost to Economy".
"CII strongly welcomes the RBI’s decision to initiate an interest rate easing cycle after nearly five years by lowering the repo rate by 25 basis points to 6.25%. This calibrated approach by the Central Bank reflects a careful balance between fostering economic growth and maintaining financial stability. The rate cut is anticipated to complement the consumption-boosting measures announced in the Union Budget 2025-26, providing a boost to domestic demand drivers.
Importantly, the recent series of liquidity easing measures introduced over the past two weeks will aid in the effective transmission of the rate cut to the productive sectors of the economy. Additionally, the RBI's indication that it will inject liquidity as needed to address any tightening of frictional and durable liquidity in the system will ensure that monetary policy transmission remains effective.
We believe that the easing inflation trend and non-inflationary fiscal policy have provided the RBI with the opportunity to continue its rate cut cycle and implement a larger rate cut once financial conditions become favourable.
RBI steps up to check cyber frauds, like mandatory registration of exclusive domain name amongst other measures which would be instrumental to build confidence in digital users", said Mr Banerjee.
7 February 2025
New Delhi