Perspective on RBI Monetary Policy by Mr. Colin Shah, MD, Kama Jewelry
Below the Perspective on RBI Monetary Policy by Mr. Colin Shah, MD, Kama Jewelry
“The RBI's decision today to reduce the repo rate while maintaining a neutral stance is a welcome and timely fillip for the jewellery industry. As financing costs are seen softening and liquidity improves, consumer credit will be more accessible, which is a very critical factor as the country enters the wedding season. Jewellery purchase is partly discretionary and mostly leveraged for many Indian consumers; this softening may therefore trigger demand across gold, diamond and gemstone jewellery.
Given that exports continue to face headwinds especially amidst higher global tariffs and weaker overseas demand, revival in domestic sentiment becomes all the more crucial. We look forward to this rate cut strengthening consumer confidence and spurring purchases in the domestic market, imparting much-needed confidence boost to small and medium jewellers. Overall, this move by RBI has the potential to provide a timely fillip to our industry's growth trajectory."
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