The Reserve Bank of India has lowered the key policy rate for the first time in almost five years, as the slowdown in inflation gives the central bank room to stimulate the economy.
Experts note that this rate cut will help strengthen confidence in the economy, sensitively affecting oil prices and global trade policy risks. The level of Indian inflation is within the target range of 2-6 percent, which gives the Reserve Bank additional grounds for reducing the policy rate.
"Lowering rates can stimulate investments and give a boost to the economy, which is currently in a slowdown stage," emphasize economists.
