Repo rate cut: Govt praises showers on RBI decision

Repo rate cut: Govt praises showers on RBI decision

Agency News

New Delhi, Feb 7 : Heaping praises on Reserve Bank of India for lowering the Repo rate, the Government on Thursday said it would definitely give a boost to the economy and employment opportunities.

Union Finance Minister Piyush Goyal tweeted, “RBI’s decision to reduce the repo rate by 25 basis point from 6.5% to 6.25% and change of stance to ‘Neutral’ will give a boost to the economy, lead to affordable credit for small businesses, homebuyers etc. and further boost employment opportunities.”

Department of Economic Affairs Secretary Subhash Chandra Garg also welcomed the decision saying it was a very balanced and pragmatic policy statement.

“…Assessment of growth and inflation is quite realistic and underlines low inflation and high growth path for India for 2019-20. Welcome change of stance to neutral and rate cut by 25 bps. Also welcome removal of FPI restriction,” he added.

Earlier in the day, RBI Governor Shaktikanta Das announced cut in repo rates by 25 basis points to 6.25 per cent in its sixth bi-monthly monetary policy. Consequently, the reverse repo has come down to 6 per cent.

Also, the stance of the central bank has been changed from 'calibrated tightening' to 'neutral'. (UNI)