 "Finance Minister Jaitley welcomes RBI rate cut")
Finance Minister Arun Jaitley welcomed the Reserve Bank of India's 50 basis points cut in interest rates on Tuesday, saying it would boost confidence and economic growth.
The decision would also provide policy support, Jaitley told reporters, adding that the government was committed to meeting its fiscal deficit targets.
Earlier, the RBI cut its policy interest rate to a 4-1/2 year low of 6.75%, in a bigger-than-expected move that, with inflation running at record lows, could help an economy in danger of slowing down.
Jaitley further said he would reassess the official gross domestic product forecast in the current fiscal year that ends next March.
The government now forecasts that the economy would achieve real growth of around 8% in the 2015-16 fiscal year. The pace of growth slowed by more than expected to 7% in the quarter to June.