The industry body has welcomed the RBI decision of reducing the repo rate by 25 basis points to 5.75 per cent from six per cent.

President of FICCI Sandip Somany said this rate cut will encourage banks to lower their lending rates for both retail and corporate credits. He said, reviving business confidence and consumer confidence in the economy is the need of the hour.

ASSOCHAM President Mr B K Goenka said the measures will rekindle economic growth and improve business sentiments. Mr Goenka further said the credit policy resolution and the RBI Governor’s emphasis on faster and higher transfer of rate cuts will be reassuring if done by the banks.