The Reserve Bank of India (RBI) cut its key repo rate for the first time in nearly five years on Friday to provide stimulus to the sluggish economy, which is expected to grow at its slowest pace in four years in the current fiscal year.

The Reserve Bank of India cut its policy rate for the first time in nearly five years as economic growth slows and inflation cools.

Outside the Reserve Bank of India (RBI) headquarters building in Mumbai.

The Reserve Bank of India likely intervened to support the rupee before the open of the local spot market ahead of a closely-watched monetary policy decision on Friday, four traders told Reuters.

The Reserve Bank of India’s monetary policy committee (MPC) today unanimously slashed the repo rate by 25 basis points to 6.25% after keeping the key policy rate unchanged for six consecutive times. The MPC also decided unanimously to continue with the 'neutral' policy stance.

The central bank’s Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points to 6.25 per cent, after having kept it unchanged for eleven straight meetings

India is expected to cut interest rates for the first time in nearly five years on Friday to provide stimulus to its sluggish economy, with easing price pressures giving policymakers more room to manoeuvre.