RBI rate cut will catalyse economic growth: Anand Sharma

RBI rate cut will catalyse economic growth: Anand SharmaAgra, Jan 29 - The cut in key policy rates by the central bank will improve liquidity and catalyse economic growth, Commerce and Industry Minister Anand Sharma said Tuesday.

"It is a positive step which will infuse liquidity and help catalyse economic growth," Sharma said while reacting to the monetary policy announced the Reserve Bank of India (RBI).

In its third quarter review of the monetary policy for the financial year 2012-13, the RBI cut key policy rates for the first time in nine months.

The repurchase rate, the interest charged by RBI on short-term borrowings by commercial banks, has been cut by 25 basis points to 7.75 percent. This has the potential to lower the cost of borrowings for banks.

Also, the cash reserve ratio, or the money against deposits which commercial banks have to retain in liquid assets, has been lowered from 4.25 percent to 4 percent.

Sharma, who is here to attend Partnership Summit, said the RBI move was balanced and it would help revive growth.

The central bank's move will make home, auto and other loans cheaper and reduce the cost of borrowings. This is expected to help revive the sluggish economic growth, which fell to nearly a decade low of 5.4 percent in the first half of the current financial year. (IANS)


Check out More news from Telecom Sector :: Pharmaceutical Sector :: Auto Sector :: Infrastructure :: Real Estate

Popular Stories

Sufi legend Begum Yaman passes away at 52

New Delhi [India], Apr 28 : Famous sufi singer and... Read More

No farmer committed suicide over drought: TN Govt. to SC

New Delhi [India], Apr. 28 : In a development bound... Read More

Never took studies as 'burden', says JEE 2017 topper

Udaipur (Rajsthan) [India], Apr 28 : Kalpit Veerwal... Read More

Narada sting: ED files case against TMC leaders

New Delhi [India], Apr. 28 : After the Central... Read More

UP STF raids petrol pumps, eight caught using cheating chip

Lucknow (Uttar Pradesh), April 28 : The special... Read More

UP school issues bizarre diktat: Yogi haircut

Meerut (Uttar Pradesh) [India], Apr 28 : In a... Read More