HONG KONG — India’s central bank said Tuesday that it would allow commercial banks to hold less money in reserve, and Australia’s central bank cut rates to an record low, steps step that could stimulate lending and economic activity.
The Reserve Bank of India is part of a long and growing list of central banks that are undertaking monetary stimulus as global economic growth appears to be flagging, mainly because of weak demand. The European Central Bank, the Central Bank of Russia, the Bank of Canada, the Monetary Authority of Singapore and others have tried a variety of measures in recent weeks to bolster their economies.
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“Over the year, we are likely to see some of these disinflationary pressures from oil show up,” he said at the time.
