India's central bank has lowered interest rates by a deeper-than-expected half a percent - the third cut in a row amid falling inflation and lower growth in Asia's third largest economy.
It also increased the amount of liquidity - or supply of money - available in the system.
The repo rate - the level at which the central bank lends money to commercial banks, influencing borrowing costs for home and car loans - now stands at 5.5%, the lowest in three years.
Explaining the rationale for the cut, RBI governor Sanjay Malhotra said growth is "lower than our aspirations" and the bank felt it was "imperative to stimulate domestic consumption and investment" amid rising global uncertainties.
The rate cut comes on the back of two previous reductions in April and February.
