Offering much before expectations, the Reserve Bank of India on Tuesday cut its short tem lending rate by 0.25 percent, reports said.
It is the second consecutive cut in interest rates by center bank in wake to boost investment for expansion of growth.
However, there is no change in the cash reserve ratio (CRR) which is still at 4 per cent.
The RBI Governor D Subbarao noted that a competitive interest rate is necessary to inject liquidity through various instruments, but cautioned on further rising of food inflation and current account deficit, sources said.
It is expected that economy touched a record high at 5.4 per cent of GDP , in third quarter of 2012-13.
