New Delhi, Sept 29 (KNN) Reserve Bank of India’s (RBI’s)  decision to aggressively cut the interest rates by 50 basis points has been welcomed by former finance minister P Chidambaram.

"I welcome the decision of RBI to reduce the repo rate by 50 basis points. This was perhaps overdue. 

"Nevertheless, it signals a movement towards a lower interest rate regime and it is therefore welcome," he said, according to a leading news agency. 

He said more policy steps by RBI were possible if the government stayed firmly on path of fiscal consolidation. 

"If government stays firmly on the path of fiscal consolidation and fiscal prudence, we can look forward to more policy steps by the RBI," he said. (KNN Bureau)