Jaitley hails move, prods banks to follow suit

Finance Minister Arun Jaitley on Tuesday welcomed Reserve Bank's cutting the key interest rate by 0.5 <g data-gr-id="15">per cent</g>, nudging banks to transmit the benefit to borrowers so as to boost investments and the economy. The rate cut, he said, will reduce the cost of funds and help economic recovery. “This decision of the RBI will significantly provide policy support to the real economy and help in the recovery process. We are looking forward now to the transmission of these cuts which will effectively help to boost confidence and investment. They will also help to realise the economy’s medium-term potential growth rate,” Jaitley told reporters.