Association welcomes reduction in repo rate

Tirupur Exporters Association (TEA) today welcomed the reduction in the Repo Rate by 0.25 per cent, announced by RBI Governor Raghuram Rajan.
However, the interest rate cut would be helpful to quote competitive rate and sustain in the global market only when the banks pass on the measures to the SME units and exporting units, TEA President, A Shaktivel said in a statement.
He also pointed out that due to absence of a decisive economic recovery in the global market including continuance of deceleration in China's Economy, reduction in the interest rate would be helpful at this crucial period.
Rajan, in the second bi-monthly Monetary Police statement for the 2015-16 announced the reduction of key policy rates by 25 basis points from 7.5 to 7.25 per cent with immediate effect and at the same time, Cash Reserve Ratio has been kept at four per cent of net demand and time liabilities.