Prolonged pause on interest rate to fare well

Mumbai: The prolonged pause on repo rate will fare well for corporate India, said experts as the central bank delivered its December bi-monthly monetary policy on expected lines.

The RBI expectedly left its key lending rates unchanged for the fifth consecutive time and predicted faster growth in the world’s fastest-growing major economy amid an uncertain outlook on inflation ahead of elections. Industry body Assocham said the RBI’s continuing focus on disinflationary monetary policy retaining repo rate unchanged at 6.50 per cent is well-aligned with the intention of the Monetary Policy Committee (MPC) for an ecosystem favourable to a sustainable growth, which promises to be robust braving global headwinds. “While inflation has been declining for the past few months, the RBI seems resolute in its target of taming it to its target of four per cent.