Accommodative policy stance reassuring

New Delhi: The Reserve Bank of India's decision to continue with the accommodative policy stance is reassuring to the industry and trade, according to chambers.

Industry body Assocham said that this decision would also get immense support from a slew of other critical measures announced by the central bank. The Reserve Bank of India on Wednesday expectedly left interest rates unchanged and maintained an accommodative stance as the economy faces a renewed threat to growth due to the resurgence of coronavirus cases. "While balancing the growth-inflation trade-off to mitigate the impact of the Covid-19 pandemic, the RBI Monetary Policy Committee's decision to continue with the accommodative policy stance 'as long as necessary' is reassuring to the industry and trade," Assocham said in a statement.

It added that the steps enumerated by RBI Governor Shaktikanta Das to ensure domestic financial stability in the wake of volatility in the global financial markets, as was seen in the rising bond yields. "Relaxation in the parking of ECB proceeds would provide flexibility to corporates raising resources from the global markets," it said.