The Reserve Bank of India's move to cut interest rates by 25 basis points signals the beginning of a low interest rate regime, the trade minister said on Thursday.
"(The) RBI's rate cut signals the beginning of a low interest regime and is highly encouraging for industry and economy," Nirmala Sitharaman said in a Twitter post, published by her ministry.
Commerce Minister - RBI's
#Ratecut signals the beginning of a low interest regime & is highly encouraging for the Industry & economy
#PIB
— CIM India@GOI (@CimGOI)
January 15, 2015Earlier, acting ahead of a scheduled monetary policy meeting on Feb. 3 and the federal annual budget statement late next month, the central bank surprised markets by lowering the repo rate - its key lending rate - to 7.75 per cent from 8.0 per cent, where it had been for the past year.