India surprises with second interest rate cut

The Reserve Bank of India has cut its key interest rate, in a surprise move for the second time this year.

The central bank in Asia's third-largest economy lowered its policy repo rate by 25 basis points to 7.5% after making a similar cut in mid-January.

The repo rate is the level at which the central bank lends to commercial banks.

Citing a weaker economy, both of the reserve bank's cuts this year have taken place outside scheduled policy meetings, surprising the market.

The rupee rose as much as 61.88 against the US dollar - its strongest since the beginning of February - after the move.

Meanwhile, the benchmark BSE Sensex index rose 1.4% to hit a record high of 30,010.91 - the first time its crossed the 30,000 mark.