India's central bank just cut interest rates for the second time in two months, giving the slowing economy a shot in the arm days before national elections.
The Reserve Bank of India (RBI) lowered its main rate from 6.25% to 6% on Thursday, citing a slowdown in the economy at home and abroad.
India's GDP slumped to 6.6% in the quarter ended December, a sharp drop from the 7.1% and 8.2% growth recorded in the previous two quarters.
The rate cut gives Prime Minister Narendra Modi a boost in his attempt to win a second term in office when polling begins next week.
Shilan Shah, India economist at Capital Economics, said in a note Thursday:
On the eve of the general election, the Reserve Bank of India has delivered another gift to the government."
