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RBI unexpectedly cuts key rate in pre-election boost for PM Modi

Reuters  |  MUMBAI 

By Suvashree Choudhury and Swati BhatMUMBAI (Reuters) - The Reserve Bank of India (RBI) on Thursday unexpectedly lowered interest rates and, as anticipated, changed its policy stance to "neutral" to boost a slowing economy after a sharp slide in the inflation rate. The cut is welcome news for Prime Minister Narendra Modi's government, which wants to boost lending and lift growth as it faces elections by May.The ruling Bharatiya Janata Party is already in election mode. In its budget on Feb. 1, the government doled out cash to farmers and tax cuts to middle-class families, at the cost of a ...

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First Published: Thu, February 07 2019. 16:09 IST