India central bank cuts interest rate to the lowest since 2011

Mumbai

INDIA'S central bank cut its policy interest rate by 25 basis points (bps) to 6.50 per cent on Tuesday, reducing it to a more than five-year low while dangling the prospect of another cut later this year if inflation trends stay benign.

Having been frustrated by commercial banks' reluctance to lower interest rates for borrowers in the past, Reserve Bank of India (RBI) governor Raghuram Rajan voiced co…