India cuts key rates

India's central bank slashed its two key short-term interest rates Wednes-day in a bid to boost a weakening economy amid the slowest third-quarter growth in six years.
The Reserve Bank of India reduced its key short-term lending rate for commercial banks, the repo, by 50 basis points to 5 percent, with the aim of encouraging banks to provide credit and maintaining liquidity, it said.
It also cut the rate at which it borrows money from banks, the reverse repo, by 50 basis points to 3.5 percent.
India's economy grew at its slowest pace in nearly six years in the third quarter as the Asian giant began to feel the full force of the deepening global downturn.
Last week Indian inflation fell to a 14-month low of 3.36 percent, stoking expectations of a further interest rate cut to spur a weakening economy that has been hit by a global slowdown.