India cuts to two-and-a-half year low

The Reserve Bank of India has slashed rates by 100 basis points in a bid to shore up rapidly flagging growth.

The cut leaves the central bank's benchmark repo rate, the rate at which banks borrow from the institution, at 5.5% - its lowest level for two-and-a-half years. It also cut its reverse repo rate, the cost the central bank must pay for absorbing cash, to 6%.

The Reserve Bank announced the measure on Saturday.

It is the third cut in less than two months.

"Contrary to earlier expectation