FM Arun Jaitley says RBI rate cut will help revive investment cycle
RBI earlier in the day surprised markets by lowering the repo rate to 7.75 per cent from 8 per cent with immediate effect.
- Jan 15, 2015,
- Updated Jan 15, 2015 12:17 PM IST
Finance Minister Arun Jaitley has said the Reserve Bank of India's 25 basis point cut in interest rates will help revive capital investments in Asia's third-largest economy.
Acting ahead of a scheduled monetary policy meeting on February 3 and the government's annual budget later in February, the central bank on Thursday surprised markets by lowering the repo rate - its key lending rate - to 7.75 per cent from 8 per cent, where it had been for the past year.
RBI also adjusted the reverse repo rate to 6.75 per cent but maintained cash reserve ratio at 4 per cent.
Investors cheered the move as BSE Sensex zoomed over 600 points after the announcement. The NSE Nifty too was trading over 2 per cent higher.
(Reuters)
Finance Minister Arun Jaitley has said the Reserve Bank of India's 25 basis point cut in interest rates will help revive capital investments in Asia's third-largest economy.
Acting ahead of a scheduled monetary policy meeting on February 3 and the government's annual budget later in February, the central bank on Thursday surprised markets by lowering the repo rate - its key lending rate - to 7.75 per cent from 8 per cent, where it had been for the past year.
RBI also adjusted the reverse repo rate to 6.75 per cent but maintained cash reserve ratio at 4 per cent.
Investors cheered the move as BSE Sensex zoomed over 600 points after the announcement. The NSE Nifty too was trading over 2 per cent higher.
(Reuters)