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Indian central bank cuts growth forecast

  • India's central bank has cut its growth forecast for this financial year to 6.5 percent from 7.5 percent.

    As the world's second-most populous nation and one of the fastest growing economies, India targets annual growth of 9 percent.

    Last year, the economy grew by 6.1 percent, down from 8.2 percent in 2010.

    The Reserve Bank of India (RBI) also left its key interest rate unchanged at 8 percent for the second consecutive month.

    In other developments, India's Home Minister Palaniappan Chidambaram has been named as the new finance minister as part of a cabinet reshuffle.