India central bank lowers key policy repo rate by 25 bps to 7.5%

Mumbai

INDIAN government bonds surged to their highest in nearly 20 months, while the rupee jumped to a one-month high on Wednesday after the central bank lowered interest rates, in a move that came earlier than expected.

India's central bank lowered its key policy repo rate by 25 basis points to 7.5 per cent, its second inter-meeting cut this year on the back of easing inflation and what it said was the "weak state" of parts of the economy.