NEW DELHI, Jan 29 (Reuters) - The Reserve Bank of India's
decision to cut rates will help revive investment in the
economy, Montek Singh Ahluwalia, deputy Chairman of the Planning
Commission said on Tuesday, adding that the economy was
beginning to bottom out after a long slowdown.
The country's central bank reduced its policy interest rate
by a widely expected 25 basis points on Tuesday, taking comfort
from cooling inflation to make the first rate cut in nine months
to support an economy headed for its slowest growth in a decade.
The RBI unexpectedly also reduced the cash reserve ratio
(CRR), the share of deposits banks must keep with
the central bank by 25 bps to 4.00 percent, which will infuse an
additional 180 billion rupees into the banking system.
(Reporting by Manoj Kumar; Writing by Arup Roychoudhury;
Editing by Frank Jack Daniel)