The Reserve Bank of India has cut its interest rate more than investors and economists expected. In a statement on Monday, the central bank said it would lower rates by 25 basis points to 6.75 percent from 7.50 percent. Raghuram Rajan, the governor of the central bank, expressed concerns over China's weakening economy and suggested that 'commodity prices will remain contained for a while'.
The Reserve Bank of India has cut its interest rate more than investors and economists expected. This marks the fourth interest rate cut this year for India's central bank, bringing it down from 7.25%﻿ to 6.75%. Raghuram Rajan, the governor of the central bank, expressed concerns over China's weakening economy and suggested that 'commodity prices will remain contained for a while'.