2 August 2017

India’s central bank cuts key lending rate to 6 percent

Reserve Bank of India Governor Urjit Patel, looks on during a press conference in Mumbai, India, Wednesday, Aug. 2, 2017. India’s central bank Wednesday cuts its key interest rate by a quarter of a percentage point on Wednesday, raising hopes of lower borrowing costs for households as inflation ebbs.
India’s central bank cut its key interest rate by a quarter of a percentage point on Wednesday, raising hopes of lower borrowing costs for households as inflation ebbs.

The announcement by the Reserve Bank of India reduced to 6 percent its repo rate, the interest rate it charges on lending to commercial banks.

India’s inflation rate declined to a record low of 1.54 percent in June, while the annual rate of growth in factory output fell to 1.7 percent in May from 8 percent in the same month a year earlier.