SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

ASSOCHAM urges RBI to cut interest rate by 25 bps due to low inflation

31 Jul 2017 Evaluate

Citing inflation at a five-year low and deceleration in the factory output, the industry chamber Associated Chambers of Commerce and Industry of India (ASSOCHAM) ahead of the meeting of the Monetary Policy Committee scheduled on August 2, has urged the Reserve Bank of India (RBI) Governor Urjit Patel to cut interest rates. After a long duration of consistency in the Repo rates, ASSOCHAM believes that the RBI could reduce the policy rate by 25 basis points (bps).

The industry chamber said a strong case was made out for a reduction in the interest rates, keeping in mind new lows in both the Consumer and Wholesale Price Index (WPI) inflation. It also said that the deceleration in factory output growth could further bolster the case for a rate cut next month to boost Asia's third-largest economy, which grew 6.1% in the January-March quarter - its weakest pace in more than two years.

Retail inflation in India during June dropped to a record low of 1.54%, while industrial production data showed that the growth in factory production fell to 1.7% in May, from 8% in the same month a year ago. The WPI also eased to 0.9% from 2.17%. ASSOCHAM said the case for rate-cut is additionally strengthened by easing of food inflation to (-) 2.12% from 0.31%. It added that good monsoon forecasts for the current financial year have additionally created a stance for further reduction in the food inflation.

Hoping for a due consideration of its demand, the ASSOCHAM further said the RBI also needs to come out with a special dispensation for loan recovery from the Small and Medium Enterprises, as also the mid-sized corporate, apart from directional guidance and softer measures on recovery from SMEs and Mid-corporate.


About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×