FIEO Hails Cut in Repo and CRR in Monetary Policy Revision

Mr M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) stated that a moderation in inflation to levels of 7.18% and substantial easing of non-food manufactured products inflation have prompted RBI to cut repo rate, to 7.75% and CRR to 4%., the latter measure infusing180 billions of primary liquidity in the banking system.

FIEO chief stated that the combined impact of these cuts may see some upsurge of bank credit to industry which had decelerated and hopefully a reversal in the average industrial production growth in the first eight months of this fiscal year which was 1.075%, much lower than the 3.95% growth in the comparable period of the previous year.