Nov. 1 (Bloomberg) — India’s central bank unexpectedly cut interest rates to stimulate spending and protect its economy from a global slowdown.

The Reserve Bank of India lowered its benchmark repurchase rate to 7.5 percent from 8 percent, according to a statement in Mumbai today. The central bank also reduced the cash reserve ratio to 5.5 percent from 6.5 percent, the statement said. 

The decision to lower borrowing costs was taken “in view of the ebbing of upside inflation risks and also to address concerns relating to the moderation in the growth momentum,” the central bank said.