Tuesday, India's central bank lowered two of its interest rates to spur growth, while Japanese Finance minister announced issuance of additional government bonds.

The Reserve Bank of India Governor, Duvvuri Subbarao, while presenting the statement on Annual Policy for the fiscal 2010, cut the repo rate and reverse repo rate by 25 basis points each. As per today's decision, the repo rate was reduced to 4.75% from 5%, and that of reverse repo rate to 3.25% from 3.5% with immediate effect.

The apex bank also chose to leave the key Cash Reserve Ratio unchanged at 5.0%, while maintaining the bank rate at 6.00%.

The central bank has projected inflation for the fiscal 2010 in the range of 4.0% to 4.5%. However, the report added that over the medium-term, the policy was aimed at keeping inflation around 3%. The central bank expects fiscal 2010 GDP growth to be at around 6%.

In other news, Japan's Finance Minister Kaoru Yosano said the government will sell an additional JPY 10.8 trillion government bonds to finance the JPY 15.4 trillion stimulus package announced on April 10 to shore up the economy.

The Hong Kong Monetary Authority said in a report that the composite interest rate dropped 4 basis points to 0.29% at the end of March from 0.33% at the end of February. The composite interest rate is a measure of the average cost of funds of banks.

Macau's composite consumer prices rose 2.35% year-on-year in March, at a faster pace compared to a 1.83% rise in February, a report by the Statistics and Census Service or DSEC said.

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