India's Central Bank Delivers Big Rate Cut to Kick-Start Growth

India's central bank cut interest rates by more than expected on June 6, citing muted inflation and a need to kick-start economic growth as the impact of US tariffs weighed on the country's outlook.

- 

MUMBAI -

The Reserve Bank of India (RBI) lowered the benchmark repo rate, the level at which it lends to commercial banks, by 50 basis points to 5.5 per cent.

A majority of analysts had expected a 25-point reduction.

The cut was its third in a row and comes a week after government data showed India's economy expanded at its slowest pace in four years for the fiscal year that ended in March.

And while the January-March quarter showed signs of a rebound, with forecast-topping 7.4 per cent year-on-year growth, analysts said US President Donald Trump's sweeping tariffs posed risks to the outlook.