Indian central bank cuts lending rate to 6%

NEW DELHI (AP) – The Indian central bank has lowered its key rate from 6% to 6%, in order to boost national growth ahead of next week's national elections.

The interest rate is what the federal bank imposes on commercial banks. Lower interest rates help borrowers.

The rate reduction is part of a context of worsening regional and global growth prospects.

In a fortnightly review of the economy released on Thursday, the Reserve Bank of India reduced the retail inflation forecast to 2.9% to 3% for the first half of this year. He referred to the drop in food and fuel prices as well as the expectations for a normal rainy season.

In its February policy statement, the RBI predicted retail inflation of between 3.2% and 3.4%.

The financial year of India begins in April-March.

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