Exporters disappointed as RBI keeps repo rate unchanged
KOLKATA: The Reserve Bank of India has disappointed the exporting community by retaining the policy Repo rate (i.e., the rate at which RBI lends money to banks) unchanged even though it acknowledges that the global trade remains subdued, said chairman of the EEPC (Engineering Export Promotion Council) India T S Bhasin on Wednesday.
"A recent RBI survey itself had brought out worsening of the financing conditions for the manufacturing sector. Under such a scenario, there was a strong case for a reduction in the interest rates by the RBI," Bhasin said.
He said, though exports have been looking up in the recent past, the global risks have gone up. Under these circumstances, the exporters would remain at a disadvantage against their competitors.
Earlier today, RBI kept the repo rate intact at 6.25 per cent.
"A recent RBI survey itself had brought out worsening of the financing conditions for the manufacturing sector. Under such a scenario, there was a strong case for a reduction in the interest rates by the RBI," Bhasin said.
He said, though exports have been looking up in the recent past, the global risks have gone up. Under these circumstances, the exporters would remain at a disadvantage against their competitors.
Earlier today, RBI kept the repo rate intact at 6.25 per cent.
