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

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

NEW DELHI (AP) — India's central bank has cuts its key interest rate by a quarter of a percentage point, raising hopes of lower borrowing costs for households as inflation ebbs.

The announcement by the Reserve Bank of India on Wednesday reduced its repo rate to 6 percent. This is the rate at which the central bank lends 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 a year earlier.

Most industrial groups had been pushing for an interest rate cut to help boost the economy by lowering the cost of borrowing.


Updated : 2021-06-19 09:38 GMT+08:00