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India: Central Bank Reduces Interest Rate to 9-Year Low

1 MIN READOct 4, 2019 | 15:32 GMT

What Happened: The Reserve Bank of India reduced its key interest rate by another 25 basis points to 5.15 percent on Oct. 4, its lowest since March 2010. The bank also maintained its "accommodative" stance, raising the prospect of another rate cut in December.

Why It Matters: The Indian central bank has already cut interest rates five times this year for a total reduction of 1.35 percentage points as part of the government's efforts to utilize monetary policy to boost economic growth. 

Background: New Delhi already slashed the corporate tax rate from 30 to 22 percent as part of the Indian government's strategy of reinvigorating economic growth amid a multi-year low in gross domestic product growth.

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