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| India cuts interest rates for first time in nine months | India cuts interest rates for first time in nine months |
| (35 minutes later) | |
| India has cut its main interest rate for the first time in nine months in an attempt to revive economic growth. | India has cut its main interest rate for the first time in nine months in an attempt to revive economic growth. |
| The Reserve Bank of India (RBI) has lowered its key rate to 7.75% from 8%. | The Reserve Bank of India (RBI) has lowered its key rate to 7.75% from 8%. |
| It also lowered the amount of money that banks need to keep in reserve, a move it said should provide 180bn rupees ($3.4bn; £2.1bn) of extra cash for them to lend. | |
| India's growth has fallen to a three-year low and the RBI has been under pressure to stimulate the economy. | |
| Easing inflation | |
| The slowdown in India's growth had resulted in calls from both the government and business for the central bank to lower the cost of borrowing. | |
| It had resisted the calls saying it had to keep inflation in check. However, the pace of consumer price growth has slowed in recent months. | It had resisted the calls saying it had to keep inflation in check. However, the pace of consumer price growth has slowed in recent months. |
| India's Wholesale Price Index, the country's main gauge of inflation, eased to an 11-month low of 7.18% in December. | |
| Commenting on its most recent move, the RBI said in a statement that the slowdown in the rate of inflation "provides space, albeit limited, for monetary policy to give greater emphasis to growth risks." | |
| The RBI added that it expects inflation to slow further in the coming months. | |
| It said that it expects the rate of inflation to dip to 6.8% in March, compared with its earlier projection of 7.5%. |