Rajan Cuts India Rates After Modi Agrees to Inflation Target
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Reserve Bank of India Governor Raghuram Rajan cut interest rates in an unscheduled move days after the government agreed for the first time to give the central bank a legal mandate to target inflation.
Rajan, citing weakness in Asia’s third-largest economy, lowered the benchmark repurchase rate by a quarter percentage point to 7.5 percent, the second such move this year. Economists at banks including Goldman Sachs Group Inc. had anticipated the RBI to hold off until the next meeting, on April 7.