SIAM has issued a statement on the RBI Repo Rate. This statement reads: ‘This increase in the repo rate is likely to impact the interest rates of car and automobile loans further. Evident from the continuous decline of sales in the last several months, the auto industry has already been reeling under a high interest regime . The industry had been hoping for a recovery through the ensuing festive season, anticipating an improvement in markets. But this move comes as a surprise dampener to all these expectations. The repo rate will also downgrade the sentiments of consumers struggling under the burden of high Equated Monthly Installments.’
SIAM feels that the ideal move by the RBI would have been to initiate measures that would enthuse the market participants, boost investor sentiment and bring confidence back in the economy.