NEW DELHI: The RBI's decision to keep interest rates unchanged while continuing its accommodative stance is a prudent step in view of the uneven path of recovery momentum, India Inc said on Friday.
The central bank expectedly kept interest rates unchanged at a record low on Friday but signalled the start of tapering pandemic-era stimulus measures on economic recovery taking roots.
Chandrajit Banerjee, Director General, CII said even as encouraging signs of improvement have been noted across several pockets of growth lately, "we are in consonance with RBI's reading that the current growth recovery process would need continued policy support even as the inflation trajectory has turned out to be more favourable than expected".
PHDCCI said accommodative policy stance by RBI will enhance consumption and strengthen economic recovery.
"The status quo for the key policy rates by RBI would strengthen the economic recovery with enhanced consumption and production possibilities," said Pradeep Multani, President, PHD Chamber of Commerce and Industry.
He said the accommodative policy stance at this juncture would further boost the sentiments of businesses and pave the way for a double-digit GDP growth in the current year 2021-22. Assocham too said RBI has wisely responded to India-specific needs for continuation of supportive interest rates for an economy which is near the shore and not quite on it.
"RBI's assessment is largely on course and the GDP growth for the FY22 might even reach the double-digit, given the unfolding of pent-up demand, as is being witnessed," it said FICCI said the policy tone was on expected lines and comes without any surprises.
"We are encouraged to note the balanced approach of the Reserve Bank with growth continuing to be given due consideration. As we move ahead on the recovery course, support from all channels will be needed until growth finds a firmer ground. RBI continues to maintain adequate liquidity even as we see some moves towards normalization," it added.