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RBI's Rajan: cut rates by 50 bps due to slowing global economy

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Reuters MUMBAI
Last Updated : Sep 29 2015 | 3:48 PM IST

MUMBAI (Reuters) - Reserve Bank of India (RBI) Governor Raghuram Rajan said one of the most important factors behind its larger-than-expected 50 basis points rate cut on Tuesday was slowing global economic growth.

Rajan, at a conference call with analysts, said the RBI's decisions were driven by fundamentals and trying to avoid under-shooting or over-shooting its inflation targets, adding the central bank did not have a "shock and awe" approach.

The comments came after the RBI cut its policy interest rate to a 4-1/2 year low of 6.75 percent on Tuesday.

(Reporting by Swati Bhat and Rajesh Kumar Singh; Editing by Biju Dwarakanath)

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First Published: Sep 29 2015 | 3:37 PM IST

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