India's central bank cuts key lending rate to 6.5 percent

Staff Writer
Columbus CEO

NEW DELHI (AP) — India's central bank has cut its key interest rate by a quarter of a percentage point and hinted at other measures to boost liquidity and spur economic growth.

The Reserve Bank of India reduced its repo rate to 6.5 percent on Tuesday. This is the rate at which the central bank lends to commercial banks.

RBI governor Raghuram Rajan kept India's growth forecast for the 2016-17 financial year unchanged at 7.6 percent. India's financial year runs from April to March.

Rajan said the central bank's policy would remain "accommodative," hinting at another rate cut in the future.