MUMBAI: The Reserve Bank of India on Friday cut interest rates for a fifth straight meeting, stepping up efforts to kickstart economic growth languishing at six-year lows.
The RBI maintained its “accommodative” stance and said it would maintain this position “as long as it is necessary” to revive growth while ensuring inflation remains within a target.
The six-member monetary policy committee (MPC) cut the repo rate by 25 basis points to 5.15%, in line with expectations. The reverse repo rate was reduced to 4.9%.
In a Reuters poll, a majority of the analysts had predicted the monetary policy committee (MPC) would cut the repo rate to 5.15%. All six MPC members voted in favor of a rate cut and for retaining the accommodative stance, the statement said.