(AP) India's central bank cut its key interest rate by a quarter percentage point to 7.75 percent, aiming to boost flagging growth in Asia's third-largest economy.
The Reserve Bank of India on Tuesday also lowered its cash reserve ratio for banks by a quarter point to 4 percent, which means banks can lend more.
India's economic growth has slowed for several quarters amid high inflation and delays to economic reforms that chilled investment.
The central bank cut its economic growth forecast for the fiscal year ending March 2013 to 5.5 percent from 5.8 percent.
It said the lower cash reserve ratio would release an extra 180 billion rupees ($3.3 billion) into the banking system.
The RBI has held off cutting rates at previous monetary policy meetings because of high inflation.