RBI delivers second rate cut with inflation racing to target

RBI's governor, Raghuram Rajan

The Reserve Bank of India (RBI) cut its policy rate today for the second time this year, as inflation continues to fall at a faster rate than prescribed by the ‘glide path'.

Citing weakness in Asia's third-largest economy, Raghuram Rajan, the RBI governor, lowered the repurchase rate by 25 basis points to 7.5%.

"Given low capacity utilisation and still-weak indicators of production and credit off-take, it is appropriate for the Reserve Bank to be pre-emptive in its policy action," Rajan said in

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