RBI goes for a fifth straight rate cut

The Reserve Bank of India on Friday cut interest rates for the fifth time in a row in an attempt to give a renewed push to a slowing economy, and said it will maintain an accommodative policy stance until growth revives.

RBI lowered its repo rate—the rate at which banks borrow from it—by 25 basis points to 5.15%, in line with the forecast of bankers and economists surveyed. With this cut, the policy rates have come off by as much as 135 basis points so far this year to a nine-year low. The central bank will “continue with an accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target,”

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