Rate cut on expected lines, 'good move' for economy: Parekh

New Delhi: Eminent banker Deepak Parekh on Wednesday said the Reserve Bank's decision to slash repo rate by 25 basis points is on expected lines and a good move for the economy.

Parekh further said that he agrees with the RBI's view that the implementation of the Goods and Services Tax (GST) was fairly smooth.

"I think it (RBI's decision to cut main policy rate) is a good move for the economy. I think it was expected and the Monetary Policy Committee (MPC) has taken a right decision," Parekh told CNBC TV18.

In its third bi-monthly monetary policy meeting of 2017- 18, the central bank cut the key policy rate by 0.25 per cent to 6 per cent, citing reduction in upside risk to inflation.

This is the first rate cut since October 2016 and the interest rate is now fallen to an over 6-year low.

The MPC has also decided to keep the policy stance neutral and to watch incoming data with a view to keeping headline inflation close to 4 per cent.

The central bank has noted that the GST rollout has been smooth.