Ex-Finance Minister Chidambaram hails RBI rate cut move

Former Finance Minister P Chidambaram on Tuesday hailed the RBI move to cut rate and hoped that it would stimulate capital investment "which has been sluggish for long".

"Welcome RBI decision to cut rate. Hope this will stimulate Capital Investment that has been sluggish for months (sic)," Chidambaram, who is also a senior spokesman of Congress, tweeted. The new RBI Governor Urjit Patel-led panel in its debut policy review today surprised the markets by 0.25 per cent rate cut, lowering borrowing cost to 6-year low, which the industry lauded as a pre-Diwali gift.

Home, auto and corporate loans may get cheaper in the wake of the rate cut.