India's central bank cuts key lending rate by half percentage point to 6.75 percent

An Indian roadside vendor sits between trucks to sell fruits at a wholesale market in Bangalore, India, Tuesday, Sept. 29, 2015. India's central bank on Tuesday cut its key interest rate by half a percentage point, aiming to spur economic growth as inflation cooled to the lowest since November. (AP Photo/Aijaz Rahi) (The Associated Press)

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Indian fruit vendors wait for customers inside their shop at a wholesale market in Bangalore, India, Tuesday, Sept. 29, 2015. India's central bank on Tuesday cut its key interest rate by half a percentage point, aiming to spur economic growth as inflation cooled to the lowest since November. (AP Photo/Aijaz Rahi) (The Associated Press)

Indian customers shop for vegetables at a market in Bangalore, India, Tuesday, Sept. 29, 2015. India's central bank on Tuesday cut its key interest rate by half a percentage point, aiming to spur economic growth as inflation cooled to the lowest since November. (AP Photo/Aijaz Rahi) (The Associated Press)

NEW DELHI – India's central bank cut its key interest rate by half a percentage point, aiming to spur economic growth as stubbornly high inflation cools.

The reduction in the repo rate to 6.75 percent was the fourth rate cut this year.

Industry groups were pressing for an interest rate cut after the inflation rate fell to 3.6 per cent in August, the lowest since November.

Reserve Bank of India governor Raghuram Rajan also lowered India's growth forecast for 2015-16 to 7.4 percent from 7.6 per cent.