Loading...

India’s central bank cuts lending rate to 6.0pc

Published: April 04, 2019 16:45:00 | Updated: April 08, 2019 14:20:32


India’s central bank has lowered its key interest rate by a quarter of a percentage point to 6.0 per cent to strengthen domestic growth ahead of a national election next week.

The interest rate is what the federal bank charges on lending to commercial banks. Lower interest rates help borrowers.

The rate cut comes amid a deterioration in the outlook for regional and global growth, reports AP.

In a bimonthly review of the economy released on Thursday, the Reserve Bank of India cut the retail inflation forecast to 2.9-3.0 per cent for the first half of this fiscal year. It cited lower food and fuel prices and expectations for a normal rainy season.

In its February policy statement, the RBI had projected retail inflation at between 3.2-3.4 per cent.

India’s financial year runs from April-March.

Share if you like