RBI's rate cut will help investment: Ahluwalia
NEW DELHI (Reuters) - 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.
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 percent, which will infuse an additional 180 billion rupees into the banking system.
(Reporting by Manoj Kumar; Writing by Arup Roychoudhury; Editing by Frank Jack Daniel)
- Tweet this
- Share this
- Digg this
- UPDATE 4-Korea ferry businessman's body found next to book, alcohol bottles
- UPDATE 3-Comcast profit boosted by internet subscriber growth, NBC
- Italy gives Google 18 months to change data use practices
- Tamil girl accuses naval personnel of rape, Sri Lanka police say
- China's Xiaomi hopes Mi 4 smartphone can take on Apple
Consumer Confidence Index
More than half of consumers globally expect job prospects to be good to excellent in the year ahead, a survey showed on Tuesday. India overtook Indonesia as the most optimistic consumer market, while Portugal and Slovenia were the most pessimistic. Full Article
India keeps world guessing in countdown to landmark trade pact deadline. Full Article
Yahoo to buy analytics startup Flurry to bolster mobile ad business. Full Article