Finance ministry welcomes RBI rate cut as inflation drops

New Delhi: The finance ministry welcomed an inter-meeting rate cut by Reserve Bank of India (RBI) on Thursday, saying it reflected easing inflation concerns and vindicated the government's efforts to achieve economic growth without inflation.

Deputy Finance Minister Jayant Sinha also told Reuters that the quarter-point rate cut would mark an "inflection point" after a period of high interest rates.

The Central Bank cut interest rates by 25 basis points to 7.75 percent.