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New Delhi India's central bank just cut interest rates for the second time in two months, giving the slowing economy a shot in the arm days before national elections.
The Reserve Bank of India lowered its main rate from 6.25% to 6% on Thursday, citing a slowdown in the economy at home and abroad. India's gross domestic product slumped to 6.6% in the quarter ended December, a sharp drop from the 7.1% and 8.2% growth recorded in the previous two quarters. The rate cut gives Prime Minister Narendra Modi a boost in his attempt to win a second term in office when polling begins next week.
The quick-fire rate cuts followed the December appointment as RBI governor of Shaktikanta Das, a former finance ministry bureaucrat. He succeeded Urjit Patel, who quit abruptly after falling out with Modi's government over the central bank's autonomy.
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