RBI is the first central bank in Asia to cut interest rates this year

The Reserve Bank of India on Wednesday used the room provided by slumping inflation to cut its main policy rate - the first easing by an Asian central bank this year - but it kept the market guessing on whether there's more space for trimming.

The rate cut is the RBI's first since one of the same size in October and a show of confidence in a country that has experienced a surge in foreign investments into debt and shares this year.

Cutting the repo rate by 25 basis points to 6.00 per cent - the lowest since November 2010