6 months ago
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India’s central bank has cut interest rates for the first time in nearly five years to counter slowing growth in Asia’s third largest economy.
According to the BBC, the Reserve Bank of India, RBI, reduced its repo rate from 6.5 per cent to 6.25 per cent, in line with the expectations of many economists.
The repo rate is the level at which the central bank lends to commercial banks.
The latest cut happens when India’s gross domestic product growth is seen slowing to a four year low of 6.7 per cent.
The RBI says it’s keeping its policy stance “neutral”, which would open more space to support growth, signalling further rate cuts.
Investment growth and urban consumption in the world’s fastest growing major economy have been flagging.
Corporate profits have also shrunk in the first half of this financial year.
The rate cut could lead to marginally lower mortgage and credit card interest rates as well as cheaper borrowing costs for companies.
English (US) ·