India's economy faces a blow, worst in a decade

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India's economy faces a blow, worst in a decade

MUMBAI: India's economy faces a blow, worst in a decade as the Reserve Bank of India cut the key policy rate to its lowest levels.

The level in nearly a decade low, stepping up its efforts to kickstart an economy 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 it is necessary” to revive growth, and ensure inflation remains within target.

The six-member Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 5.15pc, for a fifth straight meeting this year and in line with expectations in a Reuters poll. The reverse repo rate was reduced to 4.9pc.

And markets expect further easing after Friday’s reduction, with the RBI seen delivering another 15-basis point cut at its December policy, before an extended pause, according to a Reuters poll conducted before the policy review.