Financial Times FT.com

India cuts rates to ease cash squeeze

MUMBAI, Nov 1 - India on Saturday unexpectedly cut its main short-term lending rate and banks’ reserve requirements to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis.

Analysts said the surprise central bank move, coming just a week after it left rates unchanged at a policy review, showed its concern that strains on Asia’s third-largest economy were quickly becoming more severe.

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