India acts on stability fears

The Reserve Bank of India has cut rates for the second time in a fortnight and introduced a raft of liquidity measures to shore up financial stability.

The Reserve Bank on Saturday said it would cut its key repo rate by half a point to 7.5% as of Monday. The move follows a percentage-point cut on 20 October.

The Reserve Bank cited the threat of contagion in justifying the loosening: "The global financial turmoil has had a knock-on effect on our financial markets; this has reinforced the impor