Business Economy


RBI policy repo rate reduction will strengthen India’s growth trajectory and domestic production: PHDCCI

New Delhi, Dec 5 (UNI) Appreciating the decision of the RBI Monetary Policy Committee to reduce the repo rate, President of PHDCCI Rajeev Juneja said that the decision will "support the growth momentum" in the economy.
Juneja said, “This decision was made on the back of robust growth (real GDP growth at 8.2 per cent Q2FY26), buoyed by strong spending during the festive season, rationalisation of the goods and service tax (GST) rates, softer crude oil prices and benign inflation (headline inflation at 0.3 per cent in October 2025) to support the growth momentum.”
Consequently, the standing deposit facility (SDF) rate stands at 5 per cent, and the marginal standing facility rate and bank rate are at 5.50 per cent.
Moreover, enhanced consolidation of the banking system, strengthened regulatory framework and healthy investment activity, especially of the private sector, have contributed to the economy's enhanced resilience.
“In its announcement on Friday, the MPC decided to conduct Open Market Operation purchases of government securities of Rs 1,00,000 crore and a three-year USD/INR Buy Sell swap of USD 5 billion this month in view of evolving liquidity conditions and outlook. These measures will ensure adequate liquidity in the system and further facilitate monetary transmission,” Juneja added.
The RBI's commitment to remain proactive, objective and consistent amidst the downside risk of softening growth and external uncertainties, despite underlying inflation pressures staying lower, and upside potential of speedy conclusion of various ongoing trade and investment negotiations, is instilling confidence among industry, says CEO and Secretary General, PHDCCI, Dr. Ranjeet Mehta.
UNI SAS KK
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