Federation welcomes RBI’s bold monetary easing to support growth and stability: FIEO President
The Federation of Indian Export Organisations (FIEO) has lauded the Reserve Bank of India’s (RBI) proactive decision to cut the repo rate by 50 basis points and reduce the Cash Reserve Ratio (CRR) by 100 basis points, calling it a well-calibrated step to stimulate economic activity while keeping inflation expectations anchored, said FIEO President, S C Ralhan.
City Air News
Jun 6, 2025 10:23
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The Federation of Indian Export Organisations (FIEO) has lauded the Reserve Bank of India’s (RBI) proactive decision to cut the repo rate by 50 basis points and reduce the Cash Reserve Ratio (CRR) by 100 basis points, calling it a well-calibrated step to stimulate economic activity while keeping inflation expectations anchored, said FIEO President, S C Ralhan.
FIEO Chief added that the RBI’s twin measures come at a critical juncture when the Indian economy is navigating global headwinds and domestic demand is in a consolidation phase. These steps are expected to ease financing conditions, enhance liquidity in the banking system, and boost credit flow, particularly to sectors such as exports, manufacturing, and MSMEs.
“By reducing the repo rate by 50bps, the RBI has signalled a strong commitment to supporting growth while maintaining macroeconomic stability. The 100bps reduction in the CRR will immediately release additional liquidity into the system, which we hope banks will transmit effectively to borrowers, including exporters,” said Ralhan.
FIEO President also noted that the RBI’s actions are aligned with its objective of achieving the medium-term consumer price index (CPI) inflation target of 4%, within a tolerance band of +/- 2%, indicating that monetary easing is being pursued without compromising on price stability.
“With global demand still facing uncertainty and geopolitical tensions impacting trade flows, these measures will offer relief to Indian exporters, lower borrowing costs, and provide momentum to investment and consumption,” Ralhan added.
S C Ralhan expressed confidence that the RBI’s forward-looking stance, supported by complementary fiscal measures, will reinforce the country’s economic resilience and help maintain India’s export competitiveness in a challenging global environment.
