New Delhi, Feb. 7 -- The Confederation of Indian Industry (CII) has strongly welcomed the Reserve Bank of India's (RBI) decision to lower the repo rate by 25 basis points to 6.25 per cent per cent marking the first rate cut in nearly five years.

Chandrajit Banerjee, Director General, CII, said, "The recent series of liquidity easing measures introduced over the past two weeks will aid in the effective transmission of the rate cut to the productive sectors of the economy. Additionally, the RBI's indication that it will inject liquidity as needed to address any tightening of frictional and durable liquidity in the system will ensure that monetary policy transmission remains effective."

He added, "We believe that the easing inflation trend...