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News Summary: India cuts key interest rate

The Associated Press

NEW STIMULUS: 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.

ENCOURAGING INVESTMENTS: The Reserve Bank of India also lowered its cash reserve ratio for banks by a quarter point to 4 percent, which means commercial banks can lend more.

THE BACKDROP: 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.