India cuts key interest rate as inflation eases

Move to help revive economic growth in Asia's third-largest economy, says central bank chief

Reserve Bank of India Governor Raghuram Rajan cut interest rates in an unscheduled review to revive growth in Asia's third-largest economy after inflation eased. Stocks, bonds and the rupee surged.

Rajan lowered the benchmark repurchase rate to 7.75 percent from 8 percent, he said in a statement on Thursday, the first reduction since May 2013. Consumer-price inflation will probably be below the central bank's target of 6 percent by January 2016, he said.