New Delhi, Oct 1
Economists and industry experts said on Wednesday said that amid a major demand push after the reduction in the GST rates, the RBI has adopted a cautious approach of holding the repo rate at 5.5 per cent.
“It will also help navigate the global uncertainties and choppy waters. With low inflation and steady policies, corporates can plan their finances carefully and invest wisely,” said Srinivasan Vaidyanathan, Operating Partner, Essar Capital.
According to a note by Axis Securities, the recent GST rate rationalisation comes at an opportune time and is expected to support consumption demand during the festive season.
The RBI Governor also listed a number of regulatory announcements aimed at regulatory compliance, improving flow of credit, foreign exchange management, customer protection and financial markets.