India's Central Bank Cuts Key Interest Rate More Than Expected
- Reserve Bank of India Governor Raghuram Rajan cuts the repurchase-agreement rate to 6.75%
- India's central bank Tuesday cut its key interest rate more than markets expected and for the fourth time this year amid optimism Indian inflation rates will remain low.
- Mr. Rajan noted in the policy statement that inflation hit a nine-month low in August, and that despite the monsoon shortfall and the uneven distribution of seasonal rains, food inflation pressures have been contained by the government's supply-management policies.
- "Since our last review, the bulk of our conditions for further accommodation have been met," Reserve Bank of India Governor Raghuram Rajan said one of the most important factors behind its larger-than-expected 50 basis points rate cut on Tuesday was slowing global economic growth.
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