India central bank’s surprise 50-basis point cut frontloads easing

India central bank's surprise 50-basis point cut frontloads easing India central bank's surprise 50-basis point cut frontloads easing

MUMBAI — The Reserve Bank of India cut its key policy rate on Friday by an unexpectedly sharp 50 basis points to 5.5%, its lowest level in nearly three years, as tepid inflation allowed the bank to focus on spurring economic growth.

This was RBI’s third consecutive rate reduction in an easing cycle that was kicked off in Febru after the bank had held rates steady for two years.