MUMBAI, April 17 The Reserve Bank of India cut
its repo rate by 50 basis points (bps) on Tuesday and not by 25
bps as widely expected, because it has a better understanding of
growth and inflation than during the March policy, Governor
Duvvuri Subbarao said.
He said a bigger cut in the key interest rate would ensure
more effective monetary policy transmission.
The wholesale price index, India's main
inflation indicator, rose an annual 6.89 percent in March,
higher than 6.70 percent rise estimated by analysts, but lower
than 6.95 percent in February.
The country's industrial output rose a much
slower-than-expected 4.1 percent in February from a year
earlier, recent data showed.
(Reporting by Neha Dasgupta; Editing by Rajesh Pandathil)