India’s central bank surprises with 50 basis-point cut, extending easing cycle

India's central bank surprises with 50 basis-point cut, extending easing cycle India's central bank surprises with 50 basis-point cut, extending easing cycle

MUMBAI — The Reserve Bank of India on Wednesday slashed its key policy rate to its lowest level in nearly three years, instituting a third consecutive rate reduction as tepid inflation allowed the bank to focus on spurring economic growth.

The central bank cut its repo rate by an unexpectedly sharp 50 basis points to 5.5%, the lowest it has been since August 2022.