India cuts rates by 1%

The Reserve Bank of India slashed its key short-term lending rate by a full percentage point on Monday. It was the central bank's first reduction in rates since March 2004.

"The global financial situation continues to be uncertain and unsettled," the Reserve Bank of India said. The cut leaves rates at 8%.

Both the extent and timing of the move came as a surprise to many analysts. The consensus forecast saw the central bank reducing rates by 50 basis points at its scheduled meeting on Friday.

The

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