TEA Describes Repo Rate Cut By RBI As Pongal Gift
Tirupur Exporters’ Association (TEA) president, Mr. A. Sakthivel has welcomed the RBI governor decision for reduction in Repo Rate, which, he described as a positive step which has come at a time when Tirupur knitwear garment exporters has been picking up the momentum and hoped that the banks will pass on the benefits to consumers with immediate effect.
Mr. Sakthivel said that the export sector was expecting the rate cut as softening of Interest Rates will help enhance the competiveness of knitwear garments in the global market. He expected that the reduction will continue in the next monetary policy statement also, as the crude oil prices are coming down.
Rate cut will provide the room for making investments in the knitwear sector, Mr. Sakthivel said adding that he has sent a letter with thanks to RBI governor, Dr. Raguram Rajan, for making this announcement as Pongal gift to exporters. RBI has decided to reduce the Policy Repo Rate by 25 basis point from 8.00% to 7.75% with immediate effect citing the reason as moderation of inflation.