India's central bank cuts interest rates for second time in 2015

  • In a surprise step, India’s central bank cut its key interest rate for the second time in 2015.

    The Reserve Bank of India brought down the repo rate to 7.5%, lowering it by 25 basis points. It had made a similar cut in January.

    The repo rate determines the level at which the RBI lends to commercial banks.

    The central bank’s decision comes days after the Narendra Modi government announced its first full annual budget. RBI governor Raghuram Rajan cited softer inflation and the government’s stated commitment towards fiscal discipline as the factors leading to the latest cut.

    Tagged as: India, central bank, interest rate, RBI, repo rat, Narendra Mod, budget, Raghuram Rajan, inflation, fiscal discipline, Indian economy, business news