India's central bank cuts key interest rate to boost growth in Asia's third largest economy

India's central bank cut a key interest rate by a quarter percentage point, the third such reduction this year in support of government efforts to boost growth.

The latest rate cut lowers the policy repo rate, at which commercial banks can borrow from the Reserve Bank of India, to 7.25 percent. The Reserve Bank of India cut interest rates by a quarter percentage point in January and March.

Tuesday's cut comes after the Indian economy registered 7.5 percent growth in the January to March quarter compared with a year earlier. That made India the world's fastest growing major economy, overtaking China's 7 percent growth in the first quarter.

India's stubbornly high inflation has moderated in recent months, giving the central bank more leeway to lower borrowing costs.