New Delhi, Oct 1 (NationPress) Prominent industry chambers expressed satisfaction on Wednesday regarding the RBI's decision to maintain the repo rate at 5.5 percent with a neutral stance. This reflects a careful strategy to foster growth while remaining vigilant about inflation.

Following a significant 100 basis points rate reduction earlier this year, the RBI's consistent and cautious stance inspires confidence among businesses, investors, and the entire economic landscape.

“By effectively balancing the dual objectives of growth and price stability, this policy communicates a reassuring message to businesses and investors. Stable interest rates enable corporations to plan long-term investments with enhanced clarity, while offering consumers the comfort of predictable borrowing costs,” stated Assocham President, Sanjay Nayar.

Key sectors, including banking, infrastructure, and automobiles, are poised to benefit from sustained demand conditions, supported by an accommodating financing environment.

“This decision also strengthens confidence in India’s macroeconomic resilience and its capacity to attract international capital,” Nayar added.

Moreover, for commodity-linked sectors, this policy indicates stability as the RBI's neutral position mitigates the risk of immediate rate increases. This approach will help alleviate input cost pressures and bolster consumption-driven demand across industries such as FMCG, infrastructure, and manufacturing. The decision offers clarity for investors, reinforcing confidence in India's growth trajectory.

The RBI's action enhances India’s economic stability, sending a favorable signal to global partners, including the US. While it may not directly influence trade tariffs, a steady policy fosters investor confidence and supports initiatives to improve bilateral trade and investment relationships.

Assocham further emphasized that the RBI's decision will stabilize the Indian rupee, helping it avoid drastic fluctuations during a period when global investors closely observe interest rate decisions made by central banks like the US Federal Reserve or the ECB.

Regarding inflation, the RBI's decisions reflect a meticulous balance between fostering growth and managing inflationary pressures.

PHDCCI Chairman Hemant Jain highlighted that with the healthy performance of the southwest monsoon, increased kharif sowing, sufficient reservoir levels, and a comfortable buffer stock of food grains, along with prudent government measures to oversee agriculture supply chains, the projection for headline CPI inflation for FY2025-26 stands at 2.6 percent.

In addition, the introduction of a package comprising 22 additional measures aimed at enhancing the ease of doing business, promoting resilience and competitiveness in the banking sector, facilitating credit flow, simplifying foreign exchange management, ensuring consumer satisfaction, and achieving the internationalization of the Indian Rupee are timely and strategic steps, Jain stressed.

The RBI's dedication to being proactive, objective, and consistent in its communications, coupled with credible actions, instills confidence in the adaptability of the policy framework to changing circumstances,” stated Dr. Ranjeet Mehta, CEO and Secretary General of PHDCCI.