RBI action will spur investment, growth: Jaitley

New Delhi, Sept 29: Welcoming the Reserve Bank of India’s decision to cut short-term lending rates by 50 basis points, Fince Minister Arun Jaitley said on Tuesday that this will support growth, while showing that inflatiory pressures were now moderating. The fince minister also welcomed the decision to allow the corporate sector to issue rupee-denomited bonds in overseas markets, often called “Masala Bonds”, and said it will give access to additiol credit for India Inc. “Today’s rate cut will boost investment and growth,” Jaitley said, soon after the 4th bi-monthly monetary policy update by Reserve Bank of India Governor Raghuram Rajan, adding that the government would like to see commercial banks reciprocating with own interest rate cuts. IANS