RBI cuts key rate by 25 bps\, changes stance to neutral

RBI cuts key rate by 25 bps, changes stance to neutral

Reuters  |  MUMBAI 

(Reuters) - The of India on Thursday unexpectedly lowered interest rates and shifted its stance to "neutral" from "calibrated tightening" to boost a slowing after a sharp fall in the rate.

The committee (MPC) cut the repo rate by 25 basis points to 6.25 percent, as predicted by only 21 of 65 analysts polled by Most polled respondents had expected the to only change the stance, to neutral.

Four of six members of the voted to cut the rates, while all six members voted for a change in the stance.

(Reporting by Suvashree Dey Choudhury; Editing by Richard Borsuk)

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First Published: Thu, February 07 2019. 11:55 IST