RBI rate cut: Something is better than nothing for auto sector
"This is definitely a positive development and it is likely to send a positive signal in the market. Although it is very less, with the lowering of interest rates, consumers' sentiments will get a boost," Society of Indian Automobile Manufacturers (SIAM) President S Sandilya said.
The country's largest car maker Maruti Suzuki India (MSI) termed the central bank's decision as a move in the right direction.
"...but it is too less for now. This step alone may not bring in any big impact, at least in the automobile market," MSI Chief Operating Officer (Marketing and Sales) Mayank Pareek said.
Shedding its long hawkish monetary policy stance, the Reserve Bank today cut short-term lending rate (repo) by 0.25 per cent to 7.75 per cent and Cash Reserve Ratio (CRR) by a similar margin to 4 per cent, releasing Rs 18,000 crore primary liquidity into the system.
The move is widely expected to lead to moderation in home, auto and corporate loans as well as revive investments.
"Today's combo of a repo as well as CRR cut is a welcome announcement and hopefully, will help revive investments in the core sectors, which the economy needs. Coupled with the recent policy announcement by the government, I see this as a good beginning," Mahindra & Mahindra President (Automotive and
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