Advertisement

HindustanTimes Mon,01 Sep 2014

Rate cut will revive investment in economy: Montek

Reuters  New Delhi, January 29, 2013
First Published: 11:34 IST(29/1/2013) | Last Updated: 11:36 IST(29/1/2013)

The Reserve Bank of India's decision to cut rates will help revive investment in the economy, Montek Singh Ahluwalia, deputy Chairman of the Planning Commission said on Tuesday, adding that the economy was beginning to bottom out after a long slowdown.

Advertisement

The country's central bank reduced its policy interest rate by a widely expected 25 basis points on Tuesday, taking comfort from cooling inflation to make the first rate cut in nine months to support an economy headed for its slowest growth in a decade.

The RBI unexpectedly also reduced the cash reserve ratio (CRR), the share of deposits banks must keep with the central bank by 25 bps to 4.00 %, which will infuse an additional 180 billion rupees into the banking system.


Advertisement
more from Business

Sensex, Nifty hit new peak post GDP surge

Continuing their record setting spree, the NSE Nifty breached the 8,000-mark for the first time ever and BSE Sensex logged a new peak of 26,812.69 in opening trade on Monday on the back of positive economic growth data for the April-June quarter.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved