Indias central bank lowers key lending rate to 625 per cent

NEW DELHI — India’s central bank has lowered its key interest rate by a quarter of a percentage point to 6.25 per cent, a step that is expected to boost the economy.The interest rate is what the federal bank charges on lending to commercial banks. Lower interest rates help borrowers but can also spur inflation. The Reserve Bank of India judged the consumer inflation rate, at 2.2 per cent in December, safe for loosening monetary policy.In a bi-monthly review of the economy released Thursday, the central bank forecast India’s economy will expand at a 7.4 per cent pace in 2019-20, up from 7.2 per cent in this fiscal year. India’s financial year runs from April to March.The central bank said growth was mostly supported by government spending on infrastructure but investment activity was recovering.The Associated Press read more