RBI rate action to help revive investment: Pranab

Interest rates were cut for the first time in three years in a bid to revive a slowing economy

The Reserve Bank of India's (RBI) decision to cut its key interest rate, by an unexpectedly sharp 50 basis points, will help revive investment, Finance Minister Pranab Mukherjee told reporters on Tuesday.

The central bank cut interest rates on Tuesday for the first time in three years, lowering its policy repo rate to 8.00%, in a bid to revive a slowing economy.

Mukherjee also said the government would take additional steps in coming weeks to bolster economic growth.