India cuts rates amid strong growth and low inflation
Malhotra says growth was at six-quarter high earlier this year as RBI eases by 25bp
India’s central bank cut its benchmark interest rate by 25 basis points today (December 5), as the country experiences strong growth and near-zero inflation.
The Reserve Bank of India said in a statement after its three-day policy meeting that it had lowered the rate to 5.25% by a unanimous vote of its board members. RBI governor Sanjay Malhotra said it had reached the decision as inflation had eased significantly and growth was expected to soften “somewhat”.
Malhotra said GDP growth in Q2 had
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