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Assocham For Status Quo On Interest Rates

Says a rate cut at this stage may only lead to pressure on Re, though it may increase consumer borrowing

Assocham For Status Quo On Interest Rates

Assocham For Status Quo On Interest Rates
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3 April 2025 6:30 AM IST

New Delhi: As the Reserve Bank of India (RBI) prepares for its upcoming monetary policy meeting from April 7 to 9, the Associated Chambers of Commerce and Industry of India (Assocham) on Wednesday called for a cautious approach, recommending that the RBI adopt a ‘wait and watch’ stance rather than opting for an immediate rate cut.

Assocham President Sanjay Nayar emphasised that while the central bank had already injected liquidity into the market through measures like a 25-basis-point rate cut during the last policy cycle, it is important to allow time for these measures to take effect.

“The RBI has recently injected liquidity into the market through various measures, including a 25 basis points cut last time,” he said.

Nayar contended that the focus should be on assessing the impact of these steps on capital expenditure (capex) growth and consumer consumption before making any further decisions.”

Given this backdrop, we believe that the RBI is expected to hold rates steady during this policy cycle. A rate cut at this stage may only lead to pressure on the rupee, though it may increase consumer borrowing,” he stated.

RBI monetary policy April 7-9 meeting Assocham recommendation cautious approach interest rate decision liquidity injection capex growth consumer borrowing rupee pressure 
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