India's central bank cuts key lending rate to 6.5 percent

India's central bank on Tuesday cut its key interest rate by a quarter of a percentage point and hinted at other measures to boost liquidity and spur economic growth.

The Reserve Bank of India reduced its repo rate to 6.5 percent. This is the rate at which the central bank lends to commercial banks.

The cut takes interest rates to their lowest level in five years and aims to boost the economy by lowering the cost of borrowing. It also comes as inflation has eased.