India's central bank slashed key interest rates by 1 percentage point Saturday amid signs of slowing economic growth and damaged investor confidence following the recent terror attacks in Mumbai. The cut, to take effect Monday, will bring the benchmark repo rate, at which the central bank makes short-term loans to commercial banks, from 7.5 percent to 6.5 percent. The reverse repurchase rate - the rate at which it borrows from commercial banks - was lowered from 6 percent to 5 percent to encourage lending.
