NEW DELHI: Leading industry chambers on Wednesday expressed delight on the RBI’s move to keep the repo rate steady at 5.5 per cent with a ‘neutral’ stance, saying that this shows a balanced approach to supporting growth while keeping an eye on inflation.
After the earlier 100 bps rate cut this year, the RBI’s steady and cautious outlook gives confidence to businesses, investors, and the broader economy.
“By balancing the twin objectives of growth and price stability, the policy sends out a reassuring signal to businesses and investors. Stable interest rates will help corporates plan long-term investments with greater clarity, while providing comfort to consumers through predictable borrowing costs, ” said Assocham President, Sanjay Nayar.
Key sectors such as banking, infrastructure and automobiles are expected to benefit from steady demand conditions, backed by a conducive financing environment.
“This move also reinforces confidence in India’s macroeconomic resilience and its ability to attract global capital, ” Nayar mentioned.
Further, for commodity-linked industries, the policy signals stability as the RBI’s neutral approach reduces the risk of immediate rate hikes. This will help moderate input cost pressures and support consumption-led demand in sectors like FMCG, infrastructure and manufacturing. The decision also provides clarity for investors, strengthening confidence in India’s growth outlook.
The RBI’s decision reinforces India’s economic stability, sending a positive signal to global partners like the US. While it doesn’t directly affect trade tariffs, steady policy strengthens investor confidence and supports efforts to enhance bilateral trade and investment ties.