FISME Welcomes RBI's Bold Rate Cut Urges Banks To Pass On Benefit To Msmes

(MENAFN- KNN India) New Delhi, Jun 6 (KNN) The Reserve Bank of India's Monetary Policy Committee (MPC) has reduced the repo rate by 50 basis point. The third consecutive rate cut has brough the repo rate to 5.5 per cent.

RBI Governor Sanjay Malhotra, announcing the MPC's decision, said the move was based on a comprehensive assessment of current macroeconomic conditions.

Federation of Indian Micro and Small & Medium Enterprises (FISME) has welcomed the decision.

“With coming down to 3.7 per cent down from the 4 per cent, it was time RBI focused on growth which is under stress due to global tariff wars and disruptions owing to weather uncertainties”, says Anil Bhardwaj, Secretary General of FISME.

“The Budget had put bold bets on growth by reducing income tax and deploying record sums for capital expenditure. It was RBI's turn to provide the second wheel to the cart”, he added.

FISME has urged the banks to pass on the rate cuts to MSMEs.

It has been seen in past that Banks continue to charge old rates when rates are reduced by increase rates simultaneously with upward change in repo rate.

This 50-basis-point reduction is the sharpest rate cut since Covid pandemic days.

(KNN Bureau)

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