RBI’s focus on price stability to further cement foundation for robust economy: Assocham

New Delhi, June 7: The Reserve Bank of India’s (RBI) unwavering focus on price stability for a sustainable economic growth would further cement the foundation for a long and robust run for the Indian economy, top trade body Assocham said on Friday.

While the policy stance of the RBI, Monetary Policy Committee (MPC) is on expected lines, the GDP forecasts of 7.2 per cent for the FY 2024-25, along with its resolve to further moderate inflation, are reassuring macro indications which can be leveraged for India remaining in the top league of economic growth among the major economies, said Deepak Sood, Assocham Secretary General.

He said that the RBI's preview of the unfolding supply side metrics also looks promising, especially with regard to food inflation and reviving rural demand, a key catalyst for sustainable growth.

“Stability in rupee on the back of comfortable foreign exchange reserves and improved prospects for global trade provide another positive to the economy,” said Sood.

RBI Governor Shaktikanta Das said there is a need to keep a watch on the challenging geo-political situation, having an impact on the global supply chain.

The Assocham lauded the RBI’s assurance in the policy statement about staying nimble and flexible in its liquidity management for preserving financial stability in the system.

The industry experts said the first MPC post-election has instilled confidence and stability in the market.

With a steady repo rate at 6.5 per cent, the RBI is hinting towards balancing growth and inflation.

“Aligned with the RBI’s stance, it’s imperative to have strong governance, risk management, compliance culture, and customer protection within the sector,” said Rajiv Sabharwal, MD and CEO, Tata Capital Ltd.

Collaboration of regulators and market players is important for the growth and evolution of the financial sector, the experts added.