India's central bank surprises with 50 basis point cut, extends easing cycle

Reserve Bank of India keeps focus on economic growth amid low inflation

The Reserve Bank of India had already implemented rate cuts at its monetary policy meetings in February and April this year. © Reuters

MUMBAI -- The Reserve Bank of India on Friday cut its key policy rate by an unexpectedly sharp 50 basis points to 5.5%, its lowest level in nearly three years, as tepid inflation allowed the bank to focus on spurring economic growth.

This was the central bank's third consecutive rate reduction in an easing cycle that was kicked off in February after the bank had held rates steady for two years.

Your personal data will be processed and information from your device (cookies, unique identifiers, and other device data) may be stored by, accessed by and shared with 1 TCF vendor(s), or used specifically by this site or app.