Finance Minister Arun Jaitley hails RBI decision to cut interest rate

Says this will lead to more money in the hands of the consumer for greater spending

Finance Minister Arun Jaitley hailed the decision of RBI to cut the interest rate, saying it is a positive development for the Indian economy and will certainly help in reviving the investment cycle the government is trying to restore.

"The RBI decision to cut the interest rate will lead to more money in the hands of the consumer for greater spending.

"It is a positive development for the Indian economy and it will certainly help in reviving the investment cycle the government is trying to restore," said Jaitley who has been nudging the central bank to ease the interest rate to lower the cost of capital.

Earlier in the day, the RBI cut interest rate by 0.25% to 7.75%.