The Tiruppur Exporters’ Association has said that the decision of the Reserve Bank of India to reduce the repo rate by 0.25 % gives confidence that there will not be any interest hike in the near future.

Raja M. Shanmugham, president of the Association, has said in a press release that the monetary policy mentioned that the Weighted Average Lending Rate on outstanding rupee loans increased by 0.04 % as the past loans continue to be priced at high rates. He appealed to all the banks to pass on the reduction in interest rate to the borrowing units, considering the requirement of industries. The knitwear exporting companies, especially those in the Micro, Small, and Medium-scale Enterprises segment, are in dire need of reduction in interest rates. These units are affected by macro economic changes. Reduction in rates for borrowings by the garment units will help revive investments and exports, he said.

The Apparel Export Promotion Council Vice-Chairman A. Sakthivel said the repo rate has come down to 5.75 % now after nine years. “It is a welcome initiative and the benefit should be passed on to the public and the industries.” He also welcomed the waiving off of charges against online payments. This will encourage online payments, he said.

Published On : 06-06-2019

Source : The Hindu