FM Arun Jaitley welcomed RBI's decision to cut repo rate by 50 basis points to 6.74 per cent, saying it would boost confidence and economic growth.
Finance Minister Arun Jaitley on Tuesday welcomed Raghuram Rajan-led Reserve Bank of India’s decision to cut repo rate by 50 basis points to 6.74 per cent, saying it would boost confidence and economic growth.
“RBI rate cut actually implies that inflation has moderated significantly and is now in comfort zone,” FM Arun Jaitley told reporters.
Adding that the government is committed to meeting its fiscal deficit targets, he said rate cut will help economic recovery process and he wants to see transmission of these cuts now.
Here is Sunil Jain, Managing Editor of The Financial Express’ take on RBI rate cut:
Speaking to the reporters, Chief Economic Advisor Shaktikanta Das on RBI’s decision to allow increase in limit of investment in G-Sec said, “will see Rs 26,000 cr inflow in G-Sec mkt this fiscal.”
Earlier in the day, Reserve Bank of India (RBI) cut its policy interest rate to a 4-1/2 year low of 6.75 per cent, in a bigger-than-expected move that, with inflation running at record lows, could help an economy in danger of slowing down.
(With inputs from Agencies)