MUMBAI, Oct 4 (Reuters) - The Reserve Bank of India on Friday cut interest rates for a fifth straight meeting, stepping up efforts to kickstart economic growth languishing at six-year lows.
The RBI maintained its “accommodative” stance and said it would maintain this position “as long as it is necessary” to revive growth, while ensuring inflation remains within target.
The six-member monetary policy committee (MPC) cut the repo rate by 25 basis points to 5.15%, in line with expectations. The reverse repo rate was reduced to 4.9%.
In a Reuters poll, a majority of the analysts had predicted the monetary policy committee (MPC) would cut the repo rate to 5.15%. All six MPC members voted in favour of a rate cut and for retaining the accommodative stance, the statement said.
Reporting by Swati Bhat and Euan Rocha Editing by Shri Navaratnam