The Reserve Bank of India (RBI) cut its key repo rate by a larger-than-expected 50 basis points (bps) on Friday, a third consecutive reduction, and slashed the reserve ratio for banks as muted inflation provided space for policymakers to focus on supporting economic growth.

On Friday, the Reserve Bank of India's Monetary Policy Committee (MPC) cut the repo rate by 50 basis points (bps) to 5.5%, marking the third consecutive rate cut this year.

The Reserve Bank of India’s six-member monetary policy committee, headed by Governor Sanjay Malhotra, voted five to one to lower the benchmark repurchase rate by 50 basis points to 5.5%.