India's central bank cuts key interest rate by quarter point to 7.75 percent in surprise move
{{#rendered}} {{/rendered}}The Reserve Bank of India has unexpectedly cut its key interest rate by a quarter of a percentage point to 7.75 percent.
The surprise decision announced Wednesday, a full two weeks before the central bank's planned review on Feb. 3, follows several months of drops in inflation.
India's short-term lending rate has been held at 8 percent since January 2014 to cope with escalating inflation, which hit double digits last year.
{{#rendered}} {{/rendered}}But helped by lower oil prices, inflation has eased since Prime Minister Narendra Modi was elected in May on promises of reviving flagging economic growth.