MUMBAI: India’s economy faces a blow, worst in a decade as the ReserveBank of India cut the key policy rate to its lowest levels.
The level in nearly a decade low, stepping up its efforts to kickstart aneconomy growing at its slowest pace in six years.
The central bank, which also sharply trimmed its 2019-20 growth forecast,said that it will maintain its “accommodative” policy stance “as long as itis necessary” to revive growth, and ensure inflation remains within target.
The six-member Monetary Policy Committee (MPC) cut the repo rate by 25basis points to 5.15pc, for a fifth straight meeting this year and in linewith expectations in a Reuters poll. The reverse repo rate was reduced to4.9pc.
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And markets expect further easing after Friday’s reduction, with the RBIseen delivering another 15-basis point cut at its December policy, beforean extended pause, according to a Reuters poll conducted before the policyreview.
