India Cuts Interest Rate for First Time in 3 Years

 　　India’s Central Bank has cut interest rates for the first time in three years to give fresh momentum¹ to a slowing economy. The government hopes it will revive confidence in an economy that many fear is losing its sheen.

　　The Central Bank announced Tuesday it will cut interest rates by half a percentage point from 8.5 percent to 8 percent. The reduction was larger than expected.

　　The Central Bank says it has lowered interest rates because economic growth has slowed to less than what it believes is its long-term trend rate.

　　Economic growth slipped to less than 7 percent last year. Many believe that 13 successive rate hikes since March 2010 contributed to the slowdown in an economy that had been racing² ahead at almost 9 percent.

　　Finance Minister Pranab Mukherjee hopes the Reserve Bank’s measure will help the economy to rebound³.

　　"The growth outlook, which had weakened in these past months, should now improve. The monetary⁴ policy announcement should help in investment revival⁵ and contribute to strengthening business sentiment,” he stated.

　　Business leaders have welcomed the cut in interest rates and expressed confidence that it will encourage more aggressive investment. More expensive credit had slowed domestic demand for homes and cars.

　　But worries remain. The Central Bank has warned it may not be able to cut interest rates any further if the government does not take steps to control a high budget deficit⁶.

　　A higher bill for food and fuel subsidies⁷, and higher spending on rural welfare programs, have put the government’ finances under strain.

　　N. R. Bhanumurthy, at the National Institute for Public Finance and Policy in New Delhi, says it is critical for the government to shore up its finances.

　　“The biggest downturn risk is the seriousness of the government in containing the deficit, particularly the subsidy⁸ bill. They are expected to bring it down sharply, he said. "If that does not realize, I think the scope for monetary policy to play as a growth measure is going to be very limited.”

　　The government is hoping that growth will improve this year to over 7 percent.

　　India is Asia’s third largest economy, and was widely seen as one of the engines that could help a global economic revival. But the recent slowdown has dented⁹ some of that that optimism.

1 momentum   

n.动力，冲力，势头；动量

参考例句：

• We exploit the energy and momentum conservation laws in this way.我们就是这样利用能量和动量守恒定律的。
• The law of momentum conservation could supplant Newton's third law.动量守恒定律可以取代牛顿第三定律。

2 racing   

n.竞赛，赛马；adj.竞赛用的，赛马用的

参考例句：

• I was watching the racing on television last night.昨晚我在电视上看赛马。
• The two racing drivers fenced for a chance to gain the lead.两个赛车手伺机竞相领先。

3 rebound   

v.弹回；n.弹回，跳回

参考例句：

• The vibrations accompanying the rebound are the earth quake.伴随这种回弹的振动就是地震。
• Our evil example will rebound upon ourselves.我们的坏榜样会回到我们自己头上的。

4 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

5 revival   

n.复兴，复苏，（精力、活力等的）重振

参考例句：

• The period saw a great revival in the wine trade.这一时期葡萄酒业出现了很大的复苏。
• He claimed the housing market was showing signs of a revival.他指出房地产市场正出现复苏的迹象。

6 deficit   

n.亏空，亏损；赤字，逆差

参考例句：

• The directors have reported a deficit of 2.5 million dollars.董事们报告赤字为250万美元。
• We have a great deficit this year.我们今年有很大亏损。

7 subsidies   

n.补贴，津贴，补助金( subsidy的名词复数 )

参考例句：

• European agriculture ministers failed to break the deadlock over farm subsidies. 欧洲各国农业部长在农业补贴问题上未能打破僵局。
• Agricultural subsidies absorb about half the EU's income. 农业补贴占去了欧盟收入的大约一半。 来自《简明英汉词典》

8 subsidy   

n.补助金，津贴

参考例句：

• The university will receive a subsidy for research in artificial intelligence.那个大学将得到一笔人工智能研究的补助费。
• The living subsidy for senior expert's family is included in the remuneration.报酬已包含高级专家家人的生活补贴。

9 dented   

v.使产生凹痕( dent的过去式和过去分词 )；损害；伤害；挫伤（信心、名誉等）

参考例句：

• The back of the car was badly dented in the collision. 汽车尾部被撞后严重凹陷。
• I'm afraid I've dented the car. 恐怕我把车子撞瘪了一些。 来自《简明英汉词典》