India central bank to work with government to ensure rate cut transmission

On Tuesday, the Reserve Bank of India cut its policy interest rate to a 4-1/2 year low of 6.75 percent, in a bigger-than-expected move that, with inflation running at record lows, could help an economy in danger of slowing down.

Rajan also said the central bank is comfortable with inflation levels with food prices continuing to fall.

(Reporting by Mumbai Newsroom; editing by Simon Cameron-Moore)