<div>Finance Minister Arun Jaitley welcomed the Reserve Bank of India's 50 basis points cut in interest rates on Tuesday (29 September), saying it would boost confidence and economic growth.</div><div> </div><div>The decision would also provide policy support, Jaitley told reporters, adding that the government was committed to meeting its fiscal deficit targets.</div><div> </div><div>Earlier, the RBI cut its policy interest rate to a 4-1/2 year low of 6.75 per cent, in a bigger-than-expected move that, with inflation running at record lows, could help an economy in danger of slowing down.</div><div> </div><div>Meanwhile, former Finance Minister P Chidambaram also welcomed the 0.50 per cent cut in interest rate announced by the RBI saying it was overdue.</div><div> </div><div>"I welcome the decision of RBI to reduce the repo rate by 50 basis points. This was perhaps overdue.</div><div> </div><div>"Nevertheless, it signals a movement towards a lower interest rate regime and it is therefore welcome," he said.</div><div> </div><div>He said more policy steps by RBI were possible if the government stayed firmly on path of fiscal consolidation.</div><div> </div><div>"If government stays firmly on the path of fiscal consolidation and fiscal prudence, we can look forward to more policy steps by the RBI," he said.<br><br>(Reuters / PTI)</div>
