By Jonathan Davies

The Reserve Bank of India (RBI) has cut interest rates for a third time in 2015.

India's central bank cut its key interest rate from 7.50% to 7.25% in an attempt to boost the economy. It took similar steps in January and March.

India is Asia's third largest economy and is growing faster than the continent's largest economy, China, which has also cut interest rates three times this year.

"With low domestic capacity utilisation, still mixed indicators of recovery, and subdued investment and credit growth, there is a case for a cut in the policy rate today," the central bank said in a statement.

With the country's inflation within its target of 2-6% at 4.87%, economists said the central bank has more room to play with interest rates.