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India Inc is looking forward to a repo rate cut in future as cost of funds has to come down in coming times, and expects continuation of accommodative policy stance by the Reserve Bank of India (RBI) as depressed demand has to be rejuvenated with enhanced liquidity for businesses and people. The RBI's Monetary Policy Committee has kept the benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance, as the economy faces the brunt of the second COVID-19 wave.

Sanjay Aggarwal, president of PHD Chamber of Commerce and Industry, said that the RBI has maintained an accommodative stance as long as necessary to revive and sustain growth on a durable basis and to mitigate impact of COVID-19, apart from an aim to keep inflation within the target. Further, Assocham said the RBI's decision sends an important message from the central bank to be reaching out to those affected the most by the COVID-19 pandemic, through increased and wider windows for soft lendings. It said while keeping the benchmark repo rates unchanged at 4 per cent was on the expected lines, extension of Rs 15,000 crore special liquidity window for contact-intensive sectors would help job-oriented sectors, particularly amongst micro, small and medium enterprises (MSMEs).

Besides, Confederation of Indian Industry (CII) said that while keeping the policy rates unchanged, RBI's move to continue to use its unconventional tools to keep yields stable amid a large government borrowing program provides succour to keep the borrowing costs contained for the private sector. Commenting on the RBI's monetary policy announcement, industry chamber FICCI said the central bank's consistency and approach towards managing the current challenges both economic and those on health front are laudable.