Amid virus outbreak, the Confederation of Indian Industry (CII) has urged the Reserve Bank of India (RBI) to reduce the key lending rate (repo) by 50 basis points in addition to a bouquet of liquidity-enhancing measures as the Coronavirus has endangered expectations of a global economic recovery.
CII Director General Chandrajit Banerjee noted that the Coronavirus has endangered the expectations of a global recovery in 2020, emerging as the biggest global concern by crippling China and significantly impacting global supply chains. He said global policymakers are trying to support financial markets and the real economy through coordinated policy actions. He added that it is time for domestic policymakers also to join the coordinated policy response.
Besides, Chandrajit Banerjee said ‘We were buoyed by the bouquet of innovative measures introduced by RBI in its last monetary policy. The need of the hour is to continue with more such innovative steps apart from announcing a rate cut by at least 50 basis points.’