India's central bank has cut interest rates for the first time in nearly five years to counter slowing growth in Asia's third largest economy. The Reserve Bank of India (RBI) reduced its repo rate from 6.5% to 6.25%, in line with the expectations of many economists.

The Reserve Bank of India seeks to boost the sluggish economy and sees inflation easing towards its 4% target.

India’s central bank has cut its benchmark interest rate for the first time in nearly five years as officials try to reverse slowing economic growth in the world’s most populous country. The Reserve Bank of India (RBI) said on Friday that it had lowered the repo rate,