RBI moves on dollar liquidity re-assuring; rate cut appears very much on cards: ASSOCHAM

Monday, March 16, 2020

New Delhi, 16th March 2020:
An unequivocal assertion by Governor Mr Shaktikanta Das that the Reserve Bank of India is 'ready' to rise up to any situation arising out of the global health emergency from the Coronavirus, should be "re-assuring" to India Inc. about stability of the Indian financial markets, ASSOCHAM Secretary General, Mr Deepak Sood has said.
 
"In the midst of pressure on the currencies of the emerging markets and global mismatches in the dollar liquidity, the RBI is rightly and swiftly acting by different tools available to it, including the Swap options. Our large resource of foreign exchange of USD 487 billion gives an adequate elbow room to the RBI to be on top of the fast evolving situation in the world markets where there is a risk aversion as nations battle it out with the unprecedented pandemic," the ASSOCHAM Secretary General said.
 
He added, "As far as the emergency cut in the policy interest rates is concerned, we must have full faith in the RBI Governor's assertion that nothing is ruled out at this junction. It is clear from his statement that the emergency rate cut is possible; we must also have confidence in the  Monetary Policy Committee to take an appropriate call, especially in the face of the worldwide reductions in the rates , including taking the same to zero by the US Federal Reserve."
 
Mr Sood further said that both the RBI and the Government are taking whatever it takes to mitigate the impact of the Coronavirus even as certain segments of the economy, like the tourism, trade, transport have come in under severe pressure. "The Indian economy has the inherent strength to deal with this emergency situation and the ASSOCHAM has thrown its weight behind the government, with the support of its 4 lakh members and affiliated organisation."
 
 
About ASSOCHAM:
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
 
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