Hailing RBI's decision to cut the interest rate, BJP today said it is the beginning of the good days for the country's economy, which is on the revival path following steps initiated by the Narendra Modi government.
"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.
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"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," BJP's national secretary Shrikant Sharma said in a statement.
The BJP leader hoped that with the economy on the revival path, the RBI will take more such decisions of reducing the interest rates in future to help provide the much-needed succour to the common man who faced the brunt of price rise during the decade of UPA rule.
Sharma cited a World Bank report in praising the country's economy which has highlighted the revival of India's economy and has stated that it is expected to grow faster than China's in 2017.
"This will be a major achievement of India and the credit for it will go to the leadership of Prime Minister Narendra Modi," he said.
In a pleasant surprise, RBI today cut its policy rate by 0.25 per cent in the first reduction in 20 months and promised more, paving way for cheaper home and auto loans as also lower cost of funds for corporate borrowers.
While the government, industry and stock markets cheered RBI's much-awaited move, state-owned Union Bank and United Bank within hours lowered their respective benchmark lending rates by similar margin, giving relief to borrowers.
Finance Minister Arun Jaitley, who has been nudging RBI for a rate cut for months now said the reduction in rates is a positive development and will lead to more money in the hands of consumers and increase spending.