India's central bank cuts again

The Reserve Bank of India cut rates by a percentage point for the second time in less than a month and eased deposit requirements for commercial banks in a bid to limit the impact of the financial crisis.

The central bank's two-pronged strategy cut the repo rate by 100 basis points to 5.5% with immediate effect and reduced the cash reserve ratio of scheduled banks by 50 basis points to 5% from 17 January.

The drop in the repo rate is the fourth cut in as many months and has brought the cost of