Reserve Bank of India cuts rates by 50 basis points to 6.75%

The Reserve Bank of India on Tuesday slashed its main policy rate by a greater than expected 50 basis points to 6.75%.

The median forecast from economists had been for a reduction to 7.0%.

"We believe India’s disinflation had been much stronger than expected recently and has created room for further monetary easing," Barclays said in a research note sent to clients on 25 September.

However, the broker's forecast had been for the RBI to lower rates by only 25 basis points.

As of 07:14 the US dollar was 0.23% higher to 66.2 rupees.