Reserve Bank of India (RBI) today announced Sixth Bi-Monthly Monetary Policy Statement for the year 2014-15 keeping the key policy rates unchanged and said since sufficient data on macro economic and prices were not available, it could not take a decision on the interest rates but assured that proper action will be taken as soon as it receives information in this regard.
Tirupur Exporters’ Association (TEA) president, Mr.A. Sakthivel said he was expecting a reduction in Repo Rate at least 0.25 percent in tune with surprise cut made on January 15, as the inflation has come down and oil prices also coming down significantly.
He, however, welcomed the decision of reducing the Statutory Liquidity Ratio (SLR) by 50 basis points from 22 per cent to 21.50 per cent with effect from February seven and expected that the banks would increase their lending and also reduce interest rates. Tirupur knitwear garment exports has recorded Rs.15,000 crore in first nine months of this fiscal year, registering a growth of 19 per cent in terms of Rupee and 18 per cent in terms of Foreign currency. The banks should come forward to support the knitwear exporting units so as to maintain the growth rate facilities, he said.
Commenting on replacing the Export Credit Refinance (ECR) facility with the provision of system level liquidity, Mr. Sakthivel said with removal of ECR, it should not affect the credit to the exporting units.