(MENAFN- Qatar News Agency) The Reserve Bank of India (RBI) on Thursday cut its key lending rate from 8% to 7.75%, in a move that is expected to boost business confidence and add momentum to economic growth.
According to Hindustantimes online, the first cut in repo rate - the rate at which it lends to commercial banks - since March 2013 brought cheer to the market. In opening trade, the benchmark index of Bombay Stock Exchange - Sensex - rose 600 points to inch closer to the 28,000-mark. The Nifty climbed 176.05 points to trade at 8,453.60.
However, experts said the RBI move might take three to six quarters to translate into fresh investments on the ground.
The central bank's move, which came earlier than expected, was guided by a sharp fall in global crude prices and expectations that the government would be doing enough to keep the fiscal deficit in check.
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