India’s central bank on Friday lowered its benchmark lending rate by 25 basis points to 5.25 percent, citing evolving macroeconomic and financial conditions.
The Reserve Bank of India said its Monetary Policy Committee voted unanimously to reduce the policy repo rate under the liquidity adjustment facility. As a result, the standing deposit facility rate was set at 5.00 percent, while the marginal standing facility and Bank Rate were adjusted to 5.50 percent.
The committee maintained a neutral policy stance. The repo rate is the rate at which the RBI lends to commercial banks in case of funding shortfalls.