RBI's decision to ease policy rates will act as "catalyst" for boosting economy

New Delhi, Feb. 7 -- Within a week of major relief in the income tax for up to Rs 12 lakh in the Union Budget, reversal of policy interest rates by the Reserve Bank of India by 25 bps (first time in 5 years) will act as a "catalyst" for boosting demand across various sectors, say industry and financial experts hailing the decision.

"The 25 basis points cut in Repo rate, as recommended by the RBI Monetary Policy Committee, would help push demand in several key sectors of the economy, including housing, automobile and consumer durables amongst others", industry association ASSOCHAM President Sanjay Nayar said, adding any drop in cost of borrowing gives a positive push not only to the demand side of the economy but also helps corporate balanc...