FICCI is disappointed with no rate cut by RBI today. Sandip Somany, President, FICCI has stated that RBI has left the repo rate unchanged in today’s announcement. This is contrary to what FICCI was expecting given the weakening growth scenario in the economy. It expressed concern that the transmission of the earlier policy rate cuts has not happened adequately, and noted that there is need for continued action on the policy rate front.

A reversal in the declining economic growth trajectory is clearly the need of the hour and all steps should be taken to bring about this change. A cut in the policy rate was also important for boosting the sentiment in the market and amongst investors, and FICCI was hoping for a bolder action on this front. With the growth projection for the current year being revised down from 6.1% to 5%, both government and the central bank should initiate some stronger measures to break the logjam particularly in the stressed sectors of the economy.