Union Finance Minister Arun Jaitley on Friday described the RBI’s decision to cut key policy rate by 0.25 per cent as an “important turning point” and hoped it would engender faster growth.
“After two years that interest rates are going to move downwards and market reactions also have been much better. I think this will leave somewhat more money in the hands of consumers. Hopefully (it will) increase spendings, make loans cheaper,” he said.
In a surprise move, the RBI on Thursday cut its policy rate by 0.25 per cent in the first reduction in 20 months and promised more.Within hours state-owned United Bank of India and Union Bank of India cut their lending rates by the same margin.
