BJP gives thumps up to RBI rate cut move
16/01/2015 12:30
According to media reports, the BJP has hailed the Reserve Bank of India’s (RBI) surprise move on Thursday to cut interest rates as softening inflationary pressures left ample room for the central bank to shift its focus on shoring up growth and reviving the investment cycle in Asia’s third biggest economy.
The BJP stressed that the decision by the apex bank to lower borrowing costs will help bolster economic growth, supporting the aggressive reform measures undertaken by the Modi government in recent months.
“It is a positive and welcome step by RBI. This is the result of the initiatives taken by the NDA government led by Prime Minister Narendra Modi to bring the economy on the path of revival after controlling prices. This is the beginning of the good days that are ahead for India's economy”, BJP’s national secretary Shrikant Sharma said in a statement, the PTI reported.
“The step will not only help provide relief to the common man through reduced EMIs but also help the economy grow and bring in investments," he added.
The RBI cut the repo rate by 25 basis points to 7.75 per cent, signaling the beginning of the rate-cut cycle.
Despite a slight uptick to 5 per cent in December 2014, retail inflation remains within the RBI’s 6 per cent target for January 2016, while wholesale inflation stood at a muted 0.11 per cent in December 2014 after standing at 0 per cent in November 2014, boosting the case for further monetary easing.
16/01/2015 12:30
According to media reports, the BJP has hailed the Reserve Bank of India’s (RBI) surprise move on Thursday to cut interest rates as softening inflationary pressures left ample room for the central bank to shift its focus on shoring up growth and reviving the investment cycle in Asia’s third biggest economy.
The BJP stressed that the decision by the apex bank to lower borrowing costs will help bolster economic growth, supporting the aggressive reform measures undertaken by the Modi government in recent months.
“It is a positive and welcome step by RBI. This is the result of the initiatives taken by the NDA government led by Prime Minister Narendra Modi to bring the economy on the path of revival after controlling prices. This is the beginning of the good days that are ahead for India's economy”, BJP’s national secretary Shrikant Sharma said in a statement, the PTI reported.
“The step will not only help provide relief to the common man through reduced EMIs but also help the economy grow and bring in investments," he added.
The RBI cut the repo rate by 25 basis points to 7.75 per cent, signaling the beginning of the rate-cut cycle.
Despite a slight uptick to 5 per cent in December 2014, retail inflation remains within the RBI’s 6 per cent target for January 2016, while wholesale inflation stood at a muted 0.11 per cent in December 2014 after standing at 0 per cent in November 2014, boosting the case for further monetary easing.
