Coimbatore : Tirupur Exporters’ Association (TEA) on Wednesday hailed the reduction of repo rate by 0.35 basis points to 5.4 announced by RBI in its monetary policy.

TEA president Raja M Shanmugham in a statement said that overall, banks had reduced their weighted Average lending rates on fresh rupee loans only by 0.29 per cent during the current easing phase so far (Feb-June 2019), when RBI reduced the repo rates by 0.75 per cent during this period.

Despite the meetings RBI Governor had with banks and asking them to transmit the reduction, only one or two of them reduced the rates, he pointed out.

He expressed hope that by taking into account the requirement of industry, all banks would come forward to pass on the reduction of interest rate to the borrowing units, which is desperately required for the knitwear garment exporting units, particularly to MSME exporting units.