ASSOCHAM expects rate cut, demand push from RBI

Published Date: 06-02-2025 | 11:25 pm

New Delhi : ASSOCHAM is expecting the beginning of a rate cut cycle by RBI’s Monetary Policy Committee tomorrow in a move to boost consumer demand and bring down interest costs for businesses.

“We share widespread expectations of a 25-basis point cut in the policy REPO rate to 6.25 percent”, ASSOCHAM Secretary General Manish Singhal said.

Expecting a demand-led economic recovery in the short to medium term, he said, “With the finance minister Nirmala Sitharaman giving a liberal income tax relief to the middle class, the next booster is expected from the RBI. We are confident the MPC will deliver it”.

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The ASSOCHAM said while food inflation is moderating, there are bright prospects for the Rabi crop. Going forward by March – April, food prices should be further corrected giving elbow room for a reversal in the rate cut cycle.

“The growth impetus is also required in the face of global headwinds in the form of tariff war amongst the top economies of the world. Exporters need to be given a strong support in a challenging environment ”.

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