RBI cuts rates for third time this year to support India's growth

Mumbai

INDIA'S central bank cut interest rates for a third time this year on Tuesday, taking advantage of subdued inflation to lend more support to an economy that the bank itself says is not doing as well as latest impressive growth numbers suggest. The Reserve Bank of India (RBI) also left open the possibility of further cuts later this year, even with forecasts of a below-average monsoon that could put pressure on food prices.

The quarter-point reduction in the repo rate to 7.25 per cent was predicted by 35 of 48 analysts polled by Reuters. Previous cuts in January and March were also by 25 basis points.