New Delhi: The government on Monday welcomed with open arms the 25 basis points cut in the Cash Reserve Ratio (CRR) by the Reserve Bank of India (RBI) but said that it was still a small step.
"The CRR cut by RBI is welcome. But it is a small step. We are not disappointed," said Finance Minister P Chidambaram.
He said that the government expected more "supportive steps" from the central bank in future.
"The government will lay out the path for fiscal consolidation. We will take more decisions between now and October 30," the Finance Minister added.
Meanwhile, Planning Commission Deputy Chairman Montek Singh Ahluwalia admitted that the rate of inflation was still a little above comfort level and needed to be brought down.
He added that the repo rate does not have much influence on the cost of credit and hence, keeping it unchanged would have low material impact.