India cuts key interest rate to 7.5 percent
MUMBAI, India (AP) - India's central bank cut its key interest rate by a quarter percentage point to 7.5 percent, aiming to revive stalled growth in Asia's third-largest economy.
Tuesday's rate cut is the second this year as concerns about slower economic growth outweigh inflation fears.
The Reserve Bank of India said recent quarterly growth figures were the weakest in 15 quarters.
The government earlier this month estimated the economy grew 4.5 percent in the October-December quarter, down sharply from growth rates near 10 percent earlier in the decade.
Lowering interest rates is intended to make borrowing cheaper to encourage businesses to invest. But analysts say the rate is still relatively high and the cut may have little effect.