RBI cuts repo rate by 25 bps, Arvind Subramanian says India can be viewed as recovering economy

Chief Economic Adviser Arvind Subramanian on Wednesday said that India can be viewed as a recovering economy after The Reserve Bank of India (RBI) lowered its policy Repo Rate by 25 basis points to 7.5 percent, signaling that it was convinced by the fiscal consolidation measures announced in the budget proposals for 2015-16. The RBI has kept the cash reserve ratio (CRR) unchanged at four percent. This is the second out of turn 25 basis point-cut after the one in January. The RBI move to cut the Repo Rate by 25 BPS had its immediate impact with the Bombay Stock Exchange's Sensex opening on a record high 30000 points and the National Index or Nifty opening at 9100 points in early morning trade.